Home flipping rebounds in Q2

Home flipping rebounds in Q2

Home flipping rebounds in Q2
For the first time in at least a year, the number of homes being flipped in the U.S. for a profit has increased. ATTOM announced in its second quarter 2021 U.S. Home Flipping Report that there were 79,733 single-family homes and condominiums flipped nationwide during Q2 2021. That represents nearly one in every 20 home sales or 4.9 percent – up from 3.5 percent in the first quarter of the year.

Still, the recent increase was still well below the 6.9 percent of home flips during the same period last year. Slimmer profit margins are largely behind the slowdown. Flippers are facing higher prices and stiffer competition, even on fixer-upper homes.

Still, ATTOM experts note that home flipping is still a winning proposition. The average return-on-investment for flippers is still over 30 percent.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.