> Top 10 Fix and Flip Markets

Resource Center

The latest real estate crowdfunding news and resources

Featured- Painter painting house exterior- Top Ten Fix and Flip Markets

Top 10 Fix and Flip Markets

The good news is that the U.S. home flipping market continues to recover, and raw profits rose to near-record levels. The downside is that profit margins dipped to their lowest point since early 2009.  In this article, we look at the overall market and identify the top 10 fix and flip markets. We also provide insight into what to look for in any market.

In their third quarter 2021 home flipping report ATTOM, the real estate data provider, reported that 94,766 properties were flipped. That represented 5.7% of all home sales. That’s up from 5.1% in the second quarter and up from 5.2% in the third quarter 2020.

They reported that gross profit (median sales price minus median paid price) moved to $68,847 in the third quarter. This is up 2.7% from $67,008 in the second quarter 2021 but down 1.6% from the $70,000 in the third quarter 2020. 

All that translated into declining profit margins. Third quarter 2021 came in at 32.3% ROI compared to the original acquisition price. Second-quarter 2021 was at 32.2% but third quarter 2020 was at 43.8%. This is the largest annual drop since early 2009.

The median price of homes flipped in the third quarter set a record at $281,847. This is up 4.8% from the second quarter and 22.5% from a year earlier. While those rising prices make great headlines the underlying pressure on profit margins is a result of sales prices rising less than the purchase prices.