ATTOM, a curator of land, property, and real estate data, has released its year-end 2023 U.S. Home Flipping Report, which shows that the number of single-family homes and condos that were flipped in 2023 was down dramatically – with Gainesville leading the way.
Nationwide, the number was down 29.3 percent from 436,807 in 2022 – the largest annual drop since 2008. Home flips as a portion of all home sales decreased from 2022 to 2023 in 112 of the 212 metropolitan statistical areas analyzed in the report (53 percent). The top 25 largest decreases in annual flipping rates all were in the South and West. They were led by Gainesville, (rate down from 15.1 percent in 2022 to 9.9 percent in 2023); Phoenix, AZ (down from 16.3 percent to 11.9 percent); Prescott, AZ (down from 9.8 percent to 6 percent); Charlotte, NC (down from 14.2 percent to 10.6 percent) and Provo, UT (down from 10.9 percent to 7.5 percent).
The report further reveals that as the number of homes flipped by investors declined, so did flips as a portion of all home sales, from 8.6 percent in 2022 to 8.1 percent last year.
In yet another sign of down times for the home-flipping industry, profits and profit margins also sank on quick buy-renovate-and-resell projects.
Flipping a house is the act of finding one that is undervalued by most buyers, buying it, making improvements to it, and then selling it.