Home flipping activity at th e end of 2016 set 8-year, 9-year, 10-year, and even some all-time highs.
According to ATTOM Data Solutions March 9 report that looked across 950 counties representing 80% of the U.S. population, highlights for what ended up being a banner year included:
193,009 single family homes and condos were flipped (highest since 2006)
7% of all single family home and condos sales were flips (338,207)
126,256 individuals and institutions flipped homes in 2016 (highest since 2007)
5% were purchased by the flipper with financing (8-year high)
Average gross-flipping profit of $62,624 (record high)
49.2% ROI (also a record high)
AnchorLoans has been a fast and favored lender, empowering individuals to take advantage of this popular market by providing fix and flip loans. According to Darren Blomquist, SVP at ATTOM Data Solutions, “Home flipping was hot in 2016, fueled by low inventory of homes in sellable or rentable condition along with a flood of capital — both foreign and domestic — searching for the returns and stability available with U.S. real estate. The combination of more home flips and a greater share of financing for flip purchases resulted in a 19 percent jump in the estimated dollar volume of financing for home flip purchases, up to $12.2 billion for the flips completed in 2016 — a nine-year high.”
Among the over 100 metropolitan statistical areas with at least 250 home flips in 2016, there were 11 with an average gross home flipping profit that exceeded $100,000 last year. They included:
San Jose ($145k)
Boston ($140k)
San Francisco ($140k)
New York ($127k)
Los Angeles ($127k)
San Diego ($111k)
Oxnard/Thousand Oaks/Ventura CA ($105k)
Seattle ($102k)
Vallejo/Fairfield CA ($101k)
Baltimore ($100k)
Washington D.C. ($100k)
In addition, the highest home flipping ROI’s could be found in these markets in 2016:
East Stroudsburg, Pennsylvania (241%)
Pittsburgh, Pennsylvania (130%)
Cleveland, Ohio (116%)
Philadelphia, Pennsylvania (107%)
Toledo, Ohio (102%)
New Orleans, Louisiana (101%).
To see the full report from ATTOM Data Solutions, click here.
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