Home Flippers Saw Profits Rise In Q1 2024 But Face Headwinds

Home flippers raked in profits in Q1 2024 but face headwinds moving forward as buyer demand cools.

ATTOM’s U.S. Home Flipping Report found that 67,817 single-family homes and condominiums were flipped in the first quarter, accounting for one of every 12 home sales (8.7%) across the country.

This was up from 7.7% of all home sales in Q4 2023, and the second consecutive quarterly gain.

Flipping rates were down YOY, however, from 9.8% in the first quarter of 2023.

Overall, investors who buy and flip homes continue to profit from their work, clocking an average 30.2% gross profit before expenses on homes sold.

This is the third quarter of profit margin gains out of the last four, marking a good moment for this business after a six-year streak of declines.

But flippers are as much impacted by overall market dynamics as any typical seller. Profits aren’t as good as they have been in the past few years. Demand is constrained, and for-sale listings are piling up.

“The latest numbers show that investors still face an uphill climb to clear significant profits after expenses,” said Rob Barber, ATTOM CEO.

“They, like others, also face tenuous times amid a housing market boom that’s cooled down over the past year. But we now have a year’s worth of a trend showing that things have started to turn around for the flipping industry, with clear signs of increasing interest flowing into the market.”

Flippers benefit from the fact that, though buyers are backing off due to affordability issues, the number of homes for sale remains near record lows.

Americans who have to move due to changing life circumstances are gaining some power over sellers as inventory increases little by little. But stock shortages keep the pool of homes they’re looking at small, giving investors an edge.