ATTOM Data Solutions' 2017 U.S. Home Flipping Report has just come out with some fascinating insights. The total number of single family home and condos sales flipped in 2017 was 207,088 - 5.9% of all sales which is an increase from the 2016 level of 5.7%. The motivation for these flips remains the potential profits with 49.8% return on investment (percentage of original purchase price), down from the all-time high average gross flipping ROI of 51.9% percent in 2016.
Memphis, Tennessee has the highest number of flips as a percentage of sales (for markets with a population over 1 million) at 12.8% with four other warm weather locations completing the top 5 - Las Vegas (9.1%), Tampa (9.0%), Birmingham (8.6%) and Phoenix (8.5%).
Below is a chart of the markets with the highest concentration of house flips:
Additional data is provided is this map, where the red markets are the places the house flipping rate is higher and blue are the markets where it is lower.
Investors are using more financing to fund their purchases - the total dollar volume of financed home flip purchases was $16.1 billion for 2017. This is an increase of 27% from $12.7 billion in 2016. Additional history is presented in the chart below from the Attom Data solutions report.
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Disclaimer - This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product.