“The first increase in flipping returns in nearly two years is a welcome sign for investors,” said Rob Barber, chief executive officer of ATTOM.
“The market remains far more competitive than it was during the peak profit years, but this quarter’s gains suggest that conditions may be stabilizing. Success still depends heavily on local market dynamics, with some metros producing strong returns while others remain difficult places to flip profitably.”
Wide variance across metro markets
Among large metros with populations over one million, Pittsburgh, PA, led with typical gross returns of 85.9%, followed by Buffalo, NY, at 84% and Virginia Beach, VA, at 74.9%.
Texas markets registered near-minimal margins: Austin at 2%, Dallas at 4.3%, San Antonio at 5.1%, and Houston at 7.2%, reflecting persistently elevated acquisition costs in those cities.
The highest flip rates by activity were concentrated in the South and Midwest. Columbus, GA, led all markets at 15.2%, ahead of Atlanta, GA, and Canton, OH, both at 12.3%. Year-over-year, flip rates declined in 56.3% of the 174 metropolitan statistical areas (MSAs) analyzed.
