According to the Home Flipping Report of Q2 by ATTOM Data Solutions, 115,198 single-family homes and condominiums were sold and flipped in the United States during the second quarter, accounting for 8.2 percent of all home transactions. The most recent percentage of properties sold for profit was down from 9.7% in Q1 2022 but nevertheless increased from 5.3 percent in Q2 2021.
In spite of the dip, the home-flipping rate during the second quarter of this year remained ranked third highest since 2000, just below the peak recorded in Q1 2022, according to ATTOM's most recent survey of the housing market.
The gross profit on typical transactions (the difference between the median purchase price paid by investors and the median selling price) for all flips countrywide, according to the research, reached $73,700 in Q2 2022. This amount increased by 10.1% from $66,944 in Q2 2021 and by 6.9% from $67,000 in Q1 2022.
According to the research, normal profit margins increased in Q2 2022 after falling or essentially remaining the same for six consecutive quarters. The typical gross-flipping profit in Q2 2022 was $73,700, which corresponded to a 29 percent ROI over the purchase price. While that remained lower than the highest of 53.1 percent this century, which was reached in 2016, and was down from 33 percent in Q1 2021, the most recent margin was higher than 25.8 percent in Q1 2022.
According to ATTOM's most recent data, the West and Northeast continued to generate the biggest raw profits on median-priced house flips in Q2 2022, measured in dollars. The study found that 16 of the top 20 were located in these areas, with San Jose, California leading the pack with a typical gross profit of $292,500, followed by San Francisco, California ($250,000), Salinas, California ($203,125), San Diego, California ($177,000), and Seattle, Washington ($174,999).
According to the Q2 2022 home flipping report, the South and Midwest were home to 17 of the 20 lowest raw profits on average home flips, with Tyler, TX ($4,000), Jackson, MS ($5,223), Lafayette, IN ($15,518), Boise, ID ($20,133), and Lexington, KY ($23,500) leading the way.
The latest home flipping data by ATTOM revealed that the average duration from purchase to resale for property flips increased to 165 days in Q2 2022, marking the third consecutive quarterly increase. While the most recent statistic was below historical norms, it was an increase from 162 days in Q1 2022 and 150 days in Q2 2021.
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