By Mike Sunnucks | Rose Law Group Reporter
Arizona and metro Phoenix are the capitals of home flipping in the U.S., according to the new research from ATTOM Data Solutions.
Arizona had the highest ‘home-flipping’ rate in the U.S. last year, according to new research from ATTOM Data Solutions.
Metro Phoenix had the most overall flip sales in the country in 2019 with 11,608 such deals. That is ahead of Atlanta (10,145 flips) and the likes of New York City (9,883 flips) and Los Angeles (5,603).
In Arizona, 9.6 percent of all home sales last year were flips. That is the most of any U.S. with the District of Columbia (8.8 percent) and Georgia (8.5 percent) having the next highest flip rates.
Flip sales are defined as sales of homes and condos and then a resale of the same property within 12 months.
There were 13,910 flip sales in Arizona last year. That is down from the peak of such activity in 2005 when there 21,297 flips.
Home flipping and investor sales were one of things blamed for the last real estate crash.
Home flips made up 10.9 percent of all home sales in metro Phoenix last year.
ATTOM reports that there were 245,864 single family homes and condos that were part of flip sales in 2019. That is the highest level since 2006. Flipped homes accounted for 6.2 percent of all home sales last year, an 8-year high.
Home flipping was also not as profitable last year. The gross profit nationwide (the difference between the median sales price the median paid by investors) was $62,900. That is down 6 percent from 2017 when flippers profited $66,899 per sale.
In metro Phoenix, flippers only had a gross profit of $33,641. That was the third lowest flip profits among large U.S. metro area and behind only Raleigh and San Antonio, according to ATTOM.