Despite challenges in the market for real estate investors, according to ATTOM’S Q1 2023 U.S. Home Flipping Report, fix and flip activity remains high across the country as profits and returns for flippers show signs of improvement.
Key Highlights from the Report for Fix and Flip Investors:
ATTOM reported that 72,960 U.S. single-family homes and condos were flipped in the first quarter, representing 9 percent of all sales. This number decreased from 9.4 percent of home sales in Q1 of 2022, but it was still up from 8 percent in Q4 2022, hitting the second-highest level this century.
Flipping activity did rise, according to their research, but mixed trends resulted for raw profits and profit margins, with both figures increasing slightly from end of last year to beginning of this year but remaining near low points over the last decade.
Although lower than last year, improvement was seen in the gross profit on transactions nationwide, increasing to $56,000 in Q1 2023, and total profit on flips nationwide was up 4.7 percent from $53,500 in Q4 2022.
Metros with the Largest Flipping Rates in Q1 2023:
According to ATTOM’s research, from Q4 2022 to Q1 2023, of the 74 percent of U.S. metro areas analyzed, home flips as a portion of home sales increased.
Highest Flipping Rates for Counties with 10 or More Home Flips:
The report goes on to state that home flips represented a minimum of 10 percent of all home sales in 36 percent of the U.S. counties analyzed during Q1 2023. This figure surpassed the 21 percent recorded in Q4 2022.
Top 10 Zip Codes with Highest Flip Rates Q1 2023:
ATTOM concluded their report with the list of top 10 zip codes with the highest home flipping rates in Q1 2023. This includes ZIPs with 5 or more home flips recorded in the first quarter of this year. Gila Bend, Arizona made the top of the list at 62.5%.
Whether you’re a seasoned investor or just starting out, understanding the dynamics of this current real estate market can provide you with a competitive edge and maximize your profitability, especially when deciding your next strategic investment opportunity. Looking to invest in your next fix and flip property?
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