Dec 17, 2020 | Dallas Morning News
One of the best housing markets in a generation hasn’t caused a flood of house flipping.
A shortage of homes for sale across the country has made it tougher to find bargain buys.
But flippers are making bigger profits when they do sell a property, according to a new study by Attom Data Solutions.
Home flips were down in 90% of U.S. metro areas in third quarter 2020 – including Dallas-Fort Worth.
The number of home flips in the D-FW area was down 29% in the third quarter from midyear and was 15% below third quarter 2019 levels, according to Attom Data.
Nationwide third quarter home flipping decreased 8% year over year.
Still, more than 57,000 homes were identified as flips. To count in the numbers, a house had to be purchased and resold during 12 months with an arm’s-length transaction.
While flips were down, the returns on the property resales were up.
The average nationwide profit represented a return on investment of more than 44% compared to about 40% a year earlier. The typical U.S. flip profit was $73,766.
“Home-flipping again generated higher profits on less transactions across the United States in the third quarter of 2020 as investors continued to make more money on a declining number of deals,” Attom Data’s Todd Teta said in the report. “This all happened in the context of the pandemic, which has created unusual circumstances for the housing market to thrive, and that has included the home-flipping business.