Home flips across the country were down in the first quarter from a year ago, according to a new report by Attom Data Solutions.
Nationwide home resales by investors and fixer uppers dropped 8% from first quarter 2018.
Attom Data counts flips as a single-family home or condo sale that was any arms-length transaction that occurred in the quarter where a previous arms-length transaction on the same property had occurred within the last 12 months.
The volume of home flips around the country has fallen in the last few years as home prices have risen and the inventories of low and moderate priced houses available to buy have fallen.
Some investors may have decided to go to the sidelines, Attom Data analysts say.
“With interest rates dropping and home price increases starting to ease, investors may be getting out while the getting is good, before the market softens further,” Todd Teta, chief product officer at Attom Data Solutions, said in a statement. “While the home flipping rate is increasing, gross profits and return on investment are starting to weaken and the number of investors that are flipping is down 11% from last year.
“Therefore, if investors are seeing profit margins drop, they may be acting now and selling before price increases drop even more.”
Attom Data found that 7.5% of total Dallas-Fort Worth home sales in the first quarter were flips. That’s about the same as the nationwide share.
The average North Texas property flipper made a profit of $30,588 — down from almost $39,000 a year ago. Nationwide the average gross flipping profit was about $60,000.
The time it took to flip the house also was up in D-FW area from a year ago to an average of almost six months.
Attom Data found that the metros with the most flips were Phoenix, New York, Atlanta and Miami — all with more than 1,500 first quarter sales.
Some markets saw big year-over-year percentage gains in home flips including Columbus, Ga. (up 83%); Raleigh, N.C. (up 73%), and Charlotte, N.C. (up 65%).