U.S. Home Flippers Are Cashing Out Before Profits Get Slimmer
- Flips account for the biggest share of sales since early 2010
- Returns slip to an almost eight-year low in slowing market
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Here’s one consequence of the slowing U.S. housing market: Home flippers are heading for the exits.
Homes that were resold within 12 months after being purchased made up 7.2% of all transactions in the first quarter, the biggest share since the start of 2010, Attom Data Solutions reported Thursday. Meanwhile, the average return on investment, not including renovations and other expenses, dropped to 39%, an almost eight-year low.