It’s too soon to say whether the drop in flipper activity — which was still the second highest in two decades — is a sign of a broader slowdown.

With the industry and the market changing faster than ever, make plans to come together with the best community in real estate at our flagship event. Join us at Inman Connect New York, Jan. 24-26, and punch your ticket to the future. Check out these just announced speakers for this must-attend event. Register here.

The percent of homes sold that were flipped slowed alongside an overall cooling real estate market during the second quarter, but remained at the second-highest level in more than two decades, according to a new report.

While 1 in every 10 homes sold in the first three months of the year was flipped, the rate fell to 1 in every 12 sold in the second quarter, according to property information database Attom. 

It remains to be seen whether the dip was a temporary move off an all-time high in the first quarter or if the fix-and-flip market will face the same broader slowdown as the nation faces uncertainty over home values, inflation and the cost of financing.

“The big question is whether the fix-and-flip market will begin to lose steam as overall home sales have declined dramatically over the past few months, and the cost of financing has virtually doubled over the past year,” said Rick Sharga, executive vice president of market intelligence for Attom.

Between April and July, 115,198 homes were flipped, which represents about 8.2 percent of all home sales during that time.

The median sales price of a flipped home reached its highest ever point: $328,000, up 21.5 percent from a year before.

Gross profits were $73,700, up 10 percent from the first quarter and the same time last year. That was a 29 percent return on investment compared to the purchase price, according to the report.

Markets with largest flipping rates 

  • Tucson, Arizona (14.5 percent)
  • Phoenix, Arizona (14.1 percent)
  • Jacksonville, Florida (13.8 percent)
  • Atlanta, Georgia (13.6 percent)
  • Gainesville, Florida (13.5 percent)

“Fix-and-flip activity is mirroring overall housing market trends, with much of the activity, and the highest returns largely coming from the West and Southeast,” Sharga said. “In fact, even though the highest gross profits came from the most expensive states, 14 of the 18 states where flips accounted for a higher percentage of overall home sales than the national average were in the South, Southeast, and Western states.”

Email Taylor Anderson

Get Inman’s Property Portfolio Newsletter delivered right to your inbox. A weekly roundup of news that real estate investors need to stay on top, delivered every Tuesday. Click here to subscribe.

rentals | websites
Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×