Home flipping activity in the U.S. declined slightly in Q3 2024 as investor profits took a hit. According to property data provider ATTOM’s Q3 2024 U.S. Home Flipping Report, 74,618 single-family homes and condos were flipped from July to September, representing 7.2% of all home sales. Comparatively, 7.6% of home sales were from house flippers in Q2 2024.
Investor profits also fell at this time, according to the report. During Q3 2024, the typical return on investment for flipped homes dropped to 28.7% before expenses, down from 31.2% in the previous quarter, and reversing six consecutive quarters of profit growth.
The typical profit margin on homes flipped during the third quarter of 2024 – based on the difference between the median purchase and median resale price for home flips – slid down to only half of the mid-50 percent peak hit in 2016. It also stayed within a range that could easily be wiped out by carrying costs that include renovation expenses, mortgage payments and property taxes, exposing again the struggles U.S. home flippers are having in turning healthy profits.
Gross profits on typical flips around the country, meanwhile, decreased to about $70,000 . That was down roughly $5,000 from the prior quarter and $10,000 from highs reached two years ago, although still up slightly from the third quarter of 2023. Read more