Home flipping flies to 11-year high
Higher home prices don’t seem to be spooking investors from buying up properties to flip. About 207,088 U.S. single-family homes and condos were flipped in 2017, the highest level since 2006, according to ATTOM Data Solutions. That compromises nearly 6 percent of all single-family home and condo sales during last year. ATTOM Data Solutions defines a “home flip” as a transaction for a single-family home or condo that occurred within the year of a previous sale of the same property.
Financing for home flippers has become more readily available in recent years, but 65 percent of flippers still used cash to buy homes flipped in 2017. That is nearly the reverse of 2004 to 2006, when 63 percent of flippers were leveraging financing to buy.
ATTOM Data Solutions’ report shows that completed home flips in 2017 yielded an average gross profit of $68,143. (That represents the difference between the median purchase price and median flipped sales price.)