House flipping down, financing flips up

House-flipping was down 8 percent in the first quarter of 2017. The number of flipped homes is at a two-year low, according to ATTOM Data Solutions, the largest multi-sourced property database in the U.S.

Home flips accounted for 6.7 percent of all single-family homes and condo sales during the first quarter. One-third of the flippers used financing to flip, the highest level of financing since the third quarter of 2008.

- Advertisement -

“The business of financing for home flippers continued to grow in the first quarter of 2017, even as the home flipping rate plateaued copared to a year ago and average home flipping returns decreased for the second consecutive quarter,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “Home flippers financed an estimated $3.5 billion in purchases for homes flipped during the quarter, up $3.3 billion in the previous quarter and up from $2.4 billion a year ago to the highest level since the fourth quarter of 2007 – a more than nine-year high.”

Markets where the most flips were financed include hot markets such as Seattle, SanDiego, Minneapolis-St. Paul, Phoenix, San Francisco and Washington, D.C. The highest home flipping rates for the first quarter occurred in Washington, D.C., followed by Nevada, Alabama, Tennessee, Maryland and Missouri.

– Digital Partners -