According to ATTOM’s newly released Q3 2022 U.S. Home Flipping Report, just 92,422 single-family homes and condos were flipped in the U.S. in the third quarter, representing 7.5 percent of all home sales. The report noted that portion was down from 8.2 percent in Q2 2022, but still up from 5.9 percent in Q3 2021.
ATTOM’s latest home flipping analysis also found the typical gross flipping profit decreased to $62,000 in Q3 2022, down 18.4 percent from $76,000 in Q2 2022 and 11.4 percent from $70,000 in Q3 2021. The third-quarter report noted the latest profit figure stood at the lowest point since Q4 2019, while the quarterly rate of decline in those profits marked the worst since early 2009.
The Q3 2022 flipping report also found that after rising in the prior two quarters, the gross-flipping profit of $62,000 in Q3 2022 translated into a 25 percent return on investment (or gross ROI) compared to the original acquisition price. That figure was down from 30.2 percent in Q2 2022 and 31.8 percent in Q3 2021 – slumping to the lowest point since 2009, and less than half the peak over the past decade of 53.1 percent in late 2016.
ATTOM’s latest report stated that markets with the greatest typical home flipping investment returns (gross ROI) in Q3 2022 were Buffalo, NY (121.7 percent return); Pittsburgh, PA (116.9 percent); Scranton, PA (88.7 percent); Reading, PA (86.7 percent) and Salisbury, MD (81.2 percent).
The report went on to note that aside from Buffalo and Pittsburgh, the largest investment returns in Q3 2022 among metro areas with a population of at least 1 million were in Philadelphia, PA (77.5 percent); Baltimore, MD (75 percent) and Detroit, MI (68.3 percent).
In this post, we dive deep into the data behind ATTOM’s Q3 2022 U.S. Home Flipping Report to uncover the top 10 U.S. counties with the highest home flipping investment returns in the third quarter. Among those larger counties with a population of 500,000 or more and at least 10 home flips in Q3 2022, those with the highest home flipping investment returns included: Erie County, NY (135.9 percent); Philadelphia County, PA (106.8 percent); Baltimore City County, MD (100 percent); Wayne County, MI (100 percent); Camden County, NJ (93.3 percent); Morris County, NJ (88.9 percent); Delaware County, PA (88 percent); Allegheny County, PA (81.6 percent); Summit County, OH (79.7 percent); and Montgomery County, PA (79.2 percent).
ATTOM’s Q3 2022 home flipping analysis also reported that nationwide, 63.7 percent of homes flipped in Q3 2022 had been purchased by investors with cash. According to the report, that figure was about the same as the 63.3 percent level in Q2 2022 and the 63.5 percent portion in Q3 2021. The report also noted that meanwhile, 36.3 percent of homes flipped in Q3 2022 had been bought with financing, about the same as in the prior quarter (36.7 percent) and a year earlier (36.5 percent).
The third-quarter report also found that of the 92,422 U.S. homes flipped in Q3 2022, 9.1 percent were sold to buyers using loans backed by the Federal Housing Administration (FHA). That figure was up from 7.6 percent in both the prior quarter and the third quarter of 2021.
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