You can hardly turn on the TV, scroll through Instagram, or take a walk in your neighborhood without seeing a home in the midst of being flipped. That’s because the trend of home flipping — or buying a home, remodeling it, and then reselling it presumably for more than initially paid — continues to rise in the United States.
According to the U.S. Home Flipping Report exactly 207,088 homes were flipped in 2017 — up 1 percent from 2016. What’s more, flippers’ return on investment continues to trend upward, too. In the last three years, home flipping has netted homeowners an average return of 50 percent (compared to 31 percent in 2004 to 2006).
If home flipping is something you’re interested in trying yourself, now could be a favorable time to test the waters. In 2017, 138,410 individuals or companies flipped homes — up 4 percent from 2016, supporting the assertion that new individuals and companies are breaking into the home flipping industry.
A word of caution for you, though: Not all regions of the United States are as profitable as others when it comes to flipping homes. The five metro areas that had the highest flipping rate in 2017 were:
- Memphis, TN
- Las Vegas, NV
- Tampa-St. Petersburg, FL
- Birmingham, AL
- Phoenix, AZ
In Memphis, home flips represented more than 30 percent of all home sales for the year. And the metro areas that saw the largest increase in the rate of home flips were Buffalo, NY (34 percent), New York-Northern New Jersey (29 percent) and Dallas-Fort Worth (23 percent).
So what do all of these numbers mean? That the dream of homeownership is alive and well — even for those trying their hand at home flipping. If you’re interested in buying a home, talk to a seasoned mortgage pro at Mr. Cooper.