Flipping Rate Soars But Profits Keep Falling
Summary
However, the more important measure of profit, the return on investment compared to original acquisition price, had disappointing results this past quarter. But profits sure didnt, as the typical home flip around the country netted the smallest return on investment in a decade," said Todd Teta, chief product officer at ATTOM. This is largely due to the fact prices for flipped homes increased at a slower rate than they did when investors first bought their properties. These price surges can be attributed to the on-going housing market boom, despite the widespread economic damage the coronavirus pandemic has caused. Gluttonous buyers are chasing after an already-tight supply of homes, but are fueled by historic lows in mortgage rates and a desire to start a new work-from-home lifestyle.