By InBusiness Phoenix
ATTOM, a leading curator of land, property, and real estate data, released its year-end 2023 U.S. Home Flipping Report, which shows that 308,922 single-family homes and condos in the United States were flipped in 2023. That was down 29.3 percent from 436,807 in 2022 – the largest annual drop since 2008.
The report further reveals that as the number of homes flipped by investors declined, so did flips as a portion of all home sales, from 8.6 percent in 2022 to 8.1 percent last year.
In yet another sign of down times for the home-flipping industry, profits and profit margins also sank on quick buy-renovate-and-resell projects.
Gross profits on typical home flips in 2023 dropped to $66,000 nationwide (the difference between the median sales price and the median amount originally paid by investors). That was down from $70,100 in 2022 and translated into just a 27.5 percent return on investment compared to the original acquisition price. The latest nationwide ROI (before accounting for mortgage interest, property taxes, renovation expenses and other holding costs) was down from 28.1 percent in 2022 and 35.7 percent in 2021, hitting the worst level since 2007.
