Just when you thought all those shows about flipping houses on HGTV were going to be obsolete, the entity behind the nation\u2019s largest property database, ATTOM Data Solutions, drops news that home flipping may be on the rise in emerging markets. <\/p>\n
ATTOM\u2019s Q3 2017 U.S. Home Flipping Report found that there was an influx of flipping and market competition in 44 out of the 93 metropolitan markets. <\/p>\n
\u201cA more than nine-year low in the ratio of flips per investor is evidence of this increased competition,\u201d Daren Blomquist, senior vice president at ATTOM Data Solutions, said at the release of the report on Thursday. \u201c[This] is pushing many investors to new metro areas that often have weaker market fundamentals but also come with a bigger supply of discounted distressed properties to flip.\u201d<\/p>\n
In order to perform the statistical analysis included in the report, ATTOM maintained its analytical definition of flipping from previous years. The property data firm defines a flipped home as a property \u201csold in an arms-length sale for the second time within a 12-month period based on publicly recorded sales deed data\u201d that was collected by their research firm.<\/p>\n
Areas with the largest revitalized interest for flippers: Baton Rouge, Louisiana (up 140 percent); Winston-Salem, North Carolina (up 58 percent); Salem, Oregon (up 51 percent); Indianapolis, Indiana (up 51 percent); and Buffalo, New York (up 47 percent).<\/p>\n
However, this flipping increase of 47 percent of markets is bucking the national trend of shifting away from flipping. Nationally, the report finds that while from Q3 to Q2, the rate of home flipping has decreased 0.5 percent, the overall home flip rate comparing Q3 2016 to Q3 2017 has stagnated at 5.1 percent. Also, return on investment (ROI) is decreasing, which might be driving this declining rate. <\/p>\n
As detailed in the report, only 37 percent of major metropolitan markets are experiencing an increase of average gross home flipping return on investment (ROI) in Q3. The rest of markets? They\u2019re experiencing an ROI downturn, receiving lowest average gross flipping ROI since Q2 2015.<\/p>\n
\u201cHome flipping profits continue to be squeezed by a dwindling inventory of distressed properties available to purchase at a discount and increasing competition from fair-weather home flippers often willing to operate on thinner margins,\u201d Blomquist said.<\/p>\n
It looks like we shouldn\u2019t count out the creation of \u201cFlip this House: Baton Rouge\u201d coming soon to a TV near you.<\/p>\n","protected":false},"excerpt":{"rendered":"
(REAL ESTATE NEWS) House flipping is fun to watch on tv, but the housing crash ended the big wave of investor flips – is it that time again?<\/p>\n","protected":false},"author":337698,"featured_media":12681,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"wds_primary_category":0,"footnotes":"","jetpack_post_was_ever_published":false,"_links_to":"","_links_to_target":""},"categories":[91],"tags":[1534,1758,1234],"class_list":["post-12680","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-big-data","tag-flipping","tag-real-estate-investing","tag-real-estate-news"],"jetpack_featured_media_url":"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2017\/12\/flipping-houses.jpg","jetpack_sharing_enabled":true,"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/12680","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/users\/337698"}],"replies":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/comments?post=12680"}],"version-history":[{"count":2,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/12680\/revisions"}],"predecessor-version":[{"id":12683,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/12680\/revisions\/12683"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/media\/12681"}],"wp:attachment":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/media?parent=12680"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/categories?post=12680"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/tags?post=12680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}