For the past couple of decades, home flipping activity has closely followed the housing market's ups and downs. When looking at the housing market today, flipping activity closely mirrors what occurred in the early 2000s, according to recent analysis from property data provider Attom Data.
During the housing boom of the early 2000s, flipping was highly profitable, reaching its peak in 2005 when 8.2% of single-family home sales were flips. However, the 2008 housing market collapse led to a drop in home values. At that time, many flippers faced losses, but the abundance of cheap, foreclosed homes soon brought more house flippers to the market. Today, similar home flipping trends can be observed.
The world of real estate is always changing. Our data show that the home flipping market saw a nearly 30 percent drop through 2023, but today, house flipping is growing again.
Much of the growth in flipping is due to rising property prices. Some speculators are predicting another bubble, while others say fears are overblown because mortgage lending practices have been reined in since the early 2000s. But with the Federal Reserve rumored to be considering a cut in interest rates, more people will buy homes and flip them.
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