RealtyTrac released a new report finding that, in the 2Q of 2016, the total of U.S. single family home and condo sales with completed flips, went up by 14% from 1Q 2016, totaling 51,434 . This number is also up 3% from last year’s highest home flips since 2Q 2010, a six-year high according to the report.
Homes flipped in 2Q 2016 accounted for 5.5% of all single family and condo sales and a total of 39,775 investors completed at least one home flip in 2Q 2016.
Home flipping is defined, in the report, as:
A property that is sold in an arms-length sale for the second time within a 12-month period based on publicly recorded sales deed data collected by ATTOM Data Solutions in more than 950 counties accounting for more than 80 percent of the U.S. population…
The data was collected using the following metrics:
A single family home or condo flip was any transaction that occurred in the quarter where a previous sale on the same property had occurred within the last 12 months. Average gross profit was calculated by subtracting the average price for the first sale (purchase) from the average price of the second sale (flip). Average gross return on investment was calculated by dividing the average gross profit by the first sale (purchase) price
The report also found that 35% of all homes flipped in the 2Q 2016 were sold between $100,000 and $200,000. And that among the 100 metropolitan areas studied, with at least 90 home flips in 2Q with the highest gross ROI (return on investment) for home flips, were found in Pittsburg, Allentown, Penn., New Orleans, Cleveland, and Philadelphia.
To read the full details of the report, click below.