ATTOM’s U.S. Home Flipping Report shows that both the home flipping rate and gross profits declined in the first quarter of 2021. Overall, the home flip rate represented just 2.7% of all home sales, hitting the lowest level since the year 2000.
ATTOM’s Home Flipping Market Analysis shows that the gross profit on flipping a typical U.S. home fell to just $63,500, which is a 37.8% return on investment (ROI) compared to the original acquisition price — its lowest ROI since the second quarter of 2011.
The home flipping rate decreased from the fourth quarter of 2020 to the first quarter of 2021 in 76 of the 108 metro areas analyzed. Metro areas with the largest quarterly decreases in the home flipping rate included Memphis, TN (rate down 80%), Lakeland, FL (down 75%), San Francisco, CA (down 74%), Columbia, SC (down 73%), and Palm Bay, FL (down 73%).
Metros with the biggest increases in home-flipping rates included Springfield, MA (rate up 114%), Albuquerque, NM (up 103%), Springfield, IL (up 95%), South Bend, IN (up 86%), and Boston, MA (up 79%).
Additionally, profit margins dipped from the first quarter of 2020 to the first quarter of 2021 in 66 of the 108 metro areas with enough data to analyze. Markets with the biggest declines in ROI included Savannah, GA (ROI down 80%), Tuscaloosa, AL (down 76%), Salisbury, MD (down 73%), Evansville, IN (down 71%), and Davenport, IA (down 68%).
However, a number of metros experienced an increased ROI for home flipping, including Springfield, MO (ROI up 120%), Provo, UT (up 118%), Omaha, NE (up 101%), Lynchburg, VA (up 101%), and Pittsburgh, PA (up 88%).
Another significant takeaway from the report is that home flippers who sold homes in the first quarter of 2021 took an average of 159 days to complete the transactions. That is the lowest average time to complete a transaction since 2013.
The top 10 metro areas with the fastest flips times include: Nashville-Davidson–Murfreesboro–Franklin, TN (107 days), Atlanta-Sandy Springs-Roswell, GA (115 days), Boise City, ID (116 days), Las Vegas-Henderson-Paradise, NV (117 days), Barnstable Town, MA (123 days), Fayetteville, NC (126 days), Detroit-Warren-Dearborn, MI (128 days), Raleigh, NC (129 days), Greenville-Anderson-Mauldin, SC (129 days), and Sacramento–Roseville–Arden-Arcade, CA (130 days).
To read the full version of ATTOM’s U.S. Home Flipping Report, including charts and graphs, click the link provided.
