For Phoenix Real Estate Investors, Home Fipping More About Speed Than Profit, Report Says

According to the latest data from an ATTOM Data Solutions report, Phoenix has one of the nation’s fastest average turnaround times for flipped homes but one of the lowest returns on investment.

The report suggests that houses were flipped in an average of 151 days, the fifth quickest in the U.S. Yet, the return on investment on Phoenix flips was just 15.3%, the fourth lowest.

In the country, it took on average 184 days to flip a home in the second quarter of 2019. The average rate of return on those sales was 39.9%. The rate of return on flipped homes has been on the decline nationally for the past couple of years. It is now at its lowest level since the fourth quarter of 2011.

“Home flipping keeps getting less and less profitable, which is another marker that the post-recession housing boom is softening or may be coming to an end,” Todd Teta, chief product officer at ATTOM Data Solutions, said in the report. “Flipping houses is still a good business to be in and profits are healthy in most parts of the country. But push-and-pull forces in the housing market appear to be working less and less in investors’ favor.”

The total number of homes flipped in the U.S. was up 12.4% in the second quarter from the first quarter of 2019, it was down 5.2% from the second quarter of 2018.

Click here to read the full data report from ATTOM Data Solutions.