{"id":1249,"date":"2018-12-10T07:00:00","date_gmt":"2018-12-10T07:00:00","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2018\/12\/10\/home-flipping-declining-as-price-gains-decrease\/"},"modified":"2025-03-13T02:19:25","modified_gmt":"2025-03-13T02:19:25","slug":"home-flipping-declining-as-price-gains-decrease","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2018\/12\/10\/home-flipping-declining-as-price-gains-decrease\/","title":{"rendered":"Home Flipping Declining as Price Gains Decrease"},"content":{"rendered":"
\n
\n
\n
\n
\n

Investors are starting to step away from flipping homes as home price gains slow. The U.S. Home Flipping Report <\/a>shows that the number of single family homes and condos flipped in the third quarter was down 12 percent from a year ago to the lowest level since early 2015, according to the report from ATTOM Data Solutions<\/a>, a real estate data provider.<\/p>\n

 <\/div>\n

A total of 45,901 single-family homes and condos were flipped in the third quarter, comprising 5 percent of all single-family home and condo sales during the quarter.<\/p>\n

\u201cHome 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,\u201d says Daren Blomquist, senior vice president at ATTOM Data Solutions. \u201cWe\u2019ve now seen three consecutive quarters with year-over-year decreases in home flips.\u201d Blomquist says the last time this occurred was in 2014, following a jump in mortgage rates during the second half of 2013.<\/p>\n

Homes that were flipped in third quarter sold for an average of $63,000 more than what the home flipper purchased them for, which is down from a record high average gross flipping profit of $68,000 in the first quarter, according to the report.<\/p>\n

\n
\n
\n
\n
\"ATTOM<\/div>\n<\/div>\n<\/div>\n

\u00a9 ATTOM.<\/p>\n

The metro areas (with populations of at least 200,000) that posted the highest average gross flipping returns in the third quarter were: Pittsburgh (136.7%); Cleveland (120.2%); Atlantic City, N.J. (110.3%); Scranton, Pa. (109%); and Philadelphia (107.9%).<\/p>\n<\/figure>\n<\/div>\n

The metros with the overall highest home flipping rates in the third quarter were: Memphis, Tenn. (10.4%); Atlantic City, N.J. (9.1%); Phoenix (8.6%); Las Vegas (7.8%); and Huntsville, Ala. (7.5%).<\/p>\n

ATTOM Data Solutions\u2019 report on flipped homes purchased in third quarter also observed that:<\/p>\n