The number of investors in the U.S. flipping homes for a profit climbed during the second quarter of 2019 but data suggests that the practice is growing less profitable. ATTOM Data Solutions released its Q2 2019 U.S. Home Flipping Report last week which showed 59,876 single-family homes and condos were flipped during the quarter. This is an increase of 12.4 percent increase from the previous quarter but 5.2 percent less than the same time last year.
High home prices are taking their toll on returns with the average gross profit during Q2 at $62,700 – down two percent. The average return-on-investment has dropped for the past six quarters.
Home flipping is the practice of purchasing a home and its subsequent sale within a 12-month period. Investors often make renovations to the home and then sell it for a profit.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.
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