Home Flipping Returns, Hits 11-Year High
Home flipping – which typically refers to the practice of buying a home, renovating it, and selling it for a profit – is popular again and, according to one recent analysis, has now returned to levels not seen since 2006. ATTOM Data Solutions’ Year-End 2017 U.S. Home Flipping Report shows that the number of single-family homes and condos that were flipped in 2017 was at an 11-year high. But, while home flipping got a bad name after the housing crash, this time is different. “The surge in home flipping in the last three years is built on a more fundamentally sound foundation than the flipping frenzy that we witnessed a little more than a decade ago,” Daren Blomquist, senior vice president at ATTOM, said. “Flippers are behaving more rationally, as evidenced by average gross flipping returns of 50 percent over the last three years compared to average gross flipping returns of just 31 percent between 2004 and 2006.” This is the first time in more than a decade that there have been more than 200,000 home flips in consecutive years. More here.