Home flipping activity down in third quarter

Fewer homeowners were flipping their properties in the third quarter of this year, according to new data from ATTOM, a property data provider.

The latest U.S. Home Flipping Report found 92,422 single-family houses and condominiums were flipped in the third quarter, which accounted for 7.5% of all home sales during the quarter, or one in 13 transactions. This is down from 8.2%, or one in every 12 home sales in the nation during the second quarter, but was up from 5.9%, or one in 17 sales, in the third quarter of last year.

ATTOM noted the home-flipping rate during the third quarter was the third-highest level in the past decade ”“ the high point of 9.7% was recorded in the first quarter of 2022. The typical resale price on flipped homes in the third quarter was $310,000, down by 5.5% from $328,000 in the second quarter and up by 6.9% from $290,000 one year earlier.

“This is a classic good news/bad news report for fix-and-flip investors,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “While flipping activity in the third quarter was among the highest on record, gross profits and profit margins declined significantly, reflecting the overall pricing weakness in today”™s housing market.”