Home Flippers See Increased Profits Despite a Challenging Housing Market
In Q1 2024, one in every 12 home sales transactions was a home flip
June 26, 2024
Image: David / stock.adobe.com
Home flips are accounting for more than 8% of nationwide home sales.
While the housing market remains challenging for buyers and sellers alike, recent data show home flippers are seeing increased profits. According to a report from property data tracker ATTOM, 67,817 single-family homes were flipped in the U.S. during Q1 2024. These transactions accounted for one in every 12 home sales from January through March. Additionally, home flippers earned an average gross profit of 30.2% before expenses on homes sold in Q1 2024. This marks the third time in the past four quarters that profit margins increased, following a six-year trend of declining profits.
Among the markets seeing the highest amount of flips, southern states with more affordable homes on average saw the highest amount of flips, including several counties in Georgia, Tennessee, and Virginia.
ATTOM’s latest report noted that in the first quarter of 2024, home flips constituted at least 10 percent of all home sales in 284 counties across the U.S., representing 31.5 percent of the 902 counties analyzed with a minimum of 10 flips. This figure marked a notable increase from the 22.7 percent of counties that had sufficient data to measure in the fourth quarter of 2023.
