Defined by Attom Data Solutions as a home bought and sold within a 12-month period, flipped single-family homes and condos had a 47.7 percent return on investment for investors in 2017's third quarter, the lowest since mid-2015.
Home flipping is still a popular business, with 49,000 homes flipped in the U.S. in the third quarter, the same amount as in 2016. More investors are flipping, however, the rate of flips per investor is down to 1.25, the lowest since 2008. CNBC reports that some of the metros with the highest flipping returns were Philadelphia, Baton Rouge, Louisiana, and Baltimore.
High-end real estate agent Tony Giordano, of the Opulent Agency, said he has multiple flipper clients right now, but the ones who get the highest returns are the builders ... "The key I see with your most common type flipper is that the carrying costs can be much lower today than in previous hot markets. Cost of construction is higher, but time to flip lower."
Advertisement
Related Stories
Trade Contractors
Skilled Trades Are Open to Technology, Survey Finds
Amidst the ongoing labor shortage, technology and digital tools can offer labor-saving gains, and the skilled trades are willing to embrace new tech in their jobs
Sustainability
Mention of Eco-Friendly Home Features Is on the Rise in Sales Listings
Home listing descriptions using eco-friendly terms have been rising over the past five years in line with growing consumer interest in the environment and energy efficiency
Design
What Gen-Z Buyers Really Want in a Home
The fervor of planning for Millennials in the home building industry has now pivoted to Gen Z. So, what does this new generation want?