Skip nav to main content.

U.S. Home Flips Down 12 Percent in Q3 2018 to 3.5-Year Low, According to ATTOM Data Solutions

A total of 45,901 U.S. single family homes and condos were flipped in the third…

  • December 27, 2018

A total of 45,901 U.S. single family homes and condos were flipped in the third quarter of 2018, down 12 percent from a year ago to the lowest level since Q1 2015 — a 3.5-year low, according to new data from property database curator ATTOM Data Solutions.

The company, in its Q3 2018 U.S. Home Flipping Report, reports that homes flipped in Q3 2018 represented 5.0 percent of all single family home and condo sales during the quarter — down from a 5.2 percent home flipping rate in Q2 2018 and down from a 5.1 percent home flipping rate in Q3 2017 to the lowest level since Q3 2016.

“Home flipping acts as a canary in the coal mine for a cooling housing market because the high velocity of transactions provides home flippers with some of the best and most real-time data on how the market is trending,” said Daren Blomquist, senior vice president at ATTOM Data Solutions.

Blomquist said, “We’ve now seen three consecutive quarters with year-over-year decreases in home flips. The last time that happened was in 2014 following the mortgage rate jump in the second half of 2013, but it’s still far from the 11 consecutive quarters with year-over-year decreases in home flips extending from Q2 2006 through Q4 2008 and leading up to the last housing crash.”

Homes flipped in Q3 2018 sold for an average of $63,000 more than what the home flipper purchased them for, down from an all-time high average gross flipping profit of $68,000 in the first quarter and down from an average gross flipping profit of $65,000 a year ago to the lowest level since Q2 2016.

The average gross flipping profit of $63,000 in Q3 2018 represented an average 42.6 percent gross flipping return on investment, down from an average 44.1 percent gross flipping ROI in the previous quarter and down from an average 48.1 percent gross flipping ROI in Q3 2017 to the lowest level since Q1 2012 — a 6.5-year low.

Nearly one-third of home flips sold for $100,000 to $200,000

The share of homes flipped that were sold by the home flipper between $100,000 to $200,000 made up 31.6 percent of all flipped sales, while those flip sales that occurred on homes sold for more than $5 million saw the highest gross flipping return on investment (ROI) of any price range.

Highest gross flipping returns in Pennsylvania, Ohio and Kentucky

States with the highest average gross flipping ROI in Q3 2018 were Pennsylvania (96.7 percent), Ohio (90.4 percent), Kentucky (84.7 percent), Louisiana (82.4 percent), and Michigan (78.6 percent).

Among 133 metropolitan statistical areas with at least 50 flips in Q3 2018 and a population of at least 200,000, those with the highest average gross flipping ROI in Q3 2018 were Pittsburgh, Pennsylvania (136.7 percent); Cleveland, Ohio(120.2 percent); Atlantic City, New Jersey (110.3 percent); Scranton, Pennsylvania (109.0 percent); and Philadelphia, Pennsylvania (107.9 percent).

Among 1,264 U.S. zip codes analyzed in the report with at least 10 flips during the quarter, those with the highest average gross flipping ROI in Q3 2018 were 33993 in Cape Coral, Florida (881.0 percent); 41091 in Cincinnati, Ohio (631.0 percent); 40356 in Lexington, Kentucky (421.1 percent); and 21216 (410.4 percent) and 21218 (357.1 percent), both in Baltimore, Maryland.

Highest home flipping rates in Arizona, Tennessee and Nevada

Arizona had the highest home flipping rate among all states in Q3 2018 (7.7 percent), followed by Tennessee (7.5 percent), Nevada (7.2 percent), Alabama (6.6 percent), and Maryland (6.0 percent).

Among 133 metropolitan statistical areas with at least 50 flips in Q3 2018 and a population of at least 200,000, those with the highest home flipping rate for the quarter were Memphis, Tennessee (10.4 percent); Atlantic City, New Jersey(9.1 percent); Phoenix, Arizona (8.6 percent); Las Vegas, Nevada (7.8 percent) and Huntsville, Alabama (7.5 percent).

Among 1,264 U.S. zip codes analyzed in the report with at least 10 flips during the quarter, those with the highest home flipping rate were 38115 in Memphis, Tennessee (28.1 percent); 33142 in Miami, Florida (27.3 percent); 11717 in Brentwood, New York (27.1 percent); 75224 in Dallas, Texas (26.8 percent); and 11436 in the county of Queens, New York (25.6 percent).

Find out more at www.attomdata.com.

Leave a Comment