Overall, the rate of flipping slipped to 5.1% in the third quarter of 2017, down from 5.6% in the previous quarter and unchanged from Q3, 2016. But ATTOM Data Solutions says that flipping has increased in 47% of markets surveyed.
The returns from home flipping have dropped to a 2-year low with an average yield of $66,448 per flip, a return of 47.7%; compared to 47.8% in Q2 and 51.2% in Q3, 2016. It’s the lowest rate of return since Q2, 2015.
"Home 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," said Daren Blomquist, senior vice president at ATTOM Data Solutions.
A total of 48,685 properties were flipped in the third quarter and the year-to-date total of 153,727 is in line with the 10-year high of the same period of 2016.
Where the flippers are
The metros where flipping remains elevated are led by Baton Rouge, Louisiana (up 140%); Winston-Salem, North Carolina (up 58%); Salem, Oregon (up 51%); Indianapolis, Indiana (up 51%); and Buffalo, New York (up 47%).
Baton Rouge also led the 33 out of 93 metros where gross ROI for flippers bucked the national trend - by rising in the third quarter of 2017 by 117%.
More market update:
Almost half of US markets have shown increased home flipping but the returns are falling.