According to ATTOM Data Solutions’ newly released Home Flipping Report, there were 59,876 U.S. single family homes and condos flipped during the second quarter of 2019. That number is up 12.4 percent from Q1 2019, but down 5.2 percent from Q2 2018. If you are interested in learning more about how to obtain a detailed flipping analysis, click here.
The report revealed that homes flipped in Q2 2019 represented 5.9 percent of all home sales during the quarter. That number is down from a post-recession high of 7.2 percent in Q1 2019, but up from 5.4 percent in Q2 2018.
Also noted in the report, homes flipped in the second quarter of 2019 generated a gross profit of $62,700 (which is the difference between the median sales price and median paid by investors). That number is up 2 percent from Q1 2019, but down 2 percent from Q2 2018.
On a national level, the gross flipping profit of $62,700 in Q2 2019 translated into a 39.9 percent ROI compared to the original acquisition price. That number is down from a 40.9 percent gross flipping ROI in Q1 2019 and from a margin of 44.4 percent in Q2 2018. Returns on home flips have dropped six quarters in a row and eight of the last 10, now standing at the lowest level since Q4 2011.
Where is flipping generating higher returns?
The report states that among the 149 metro areas analyzed in the report with at least 50 home flips in Q2 2019, five had gross ROI flipping profits of more than 100 percent: Scranton, PA (134 percent); Pittsburgh, PA (132.5 percent); Reading, PA (129.3 percent); Kingsport, TN (104.1 percent) and Augusta, GA (101.1 percent).
On the zip code level, the top 10 zips to flip in Q2 2019 based on gross ROI, with at least 10 more flips during the quarter, included 49426-Ottawa County, MI (324.9 percent); 48205-Wayne County, MI (317.4 percent); 19134-Philadelphia County, PA (303.8 percent); 60617-Cook County, IL (292.9 percent); 37771-Loudon County, TN (289.5 percent); 60628-Cook County, IL (287.9 percent); 37716-Anderson County, TN (277.6 percent); 60619-Cook County, IL (262.1 percent); 32254-Duval County, FL (260.0 percent); and 19139-Philadelphia County, PA (259.7 percent).
The Q2 2019 gross flipping profit for these top 10 zips were as follows: 49426-Ottawa County, MI ($227,100); 48205-Wayne County, MI ($36,500); 19134-Philadelphia County, PA ($79,000); 60617-Cook County, IL ($123,000); 37771-Loudon County, TN ($127,375); 60628-Cook County, IL ($118,750); 37716-Anderson County, TN ($110,993); 60619-Cook County, IL ($152,000); 32254-Duval County, FL ($78,000); and 19139-Philadelphia County, PA ($120,750).
Where does your area rank in flipping returns? Contact ATTOM to find out!