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2 days ago
In-depth analysis, data and strategic developments spanning the entire mortgage industry
As home flipping skyrockets, profit margins sink to 2009 levels
Abstract
The share of resales by home flipping investors accelerated dramatically as 2022 got underway, but activity could be on the verge of slowing down due to a declining return on investment. The first quarter’s flipping share of all home resales rose to 9.6% from 6.9% in the fourth quarter of 2021. The percentage of flipped homes that went to borrowers who use Federal Housing Administration-insured financing declined to 7.9 percent. Some fix-and-flip homes do end up in the hands of FHA borrowers. It remains to be seen whether any pullback by investors could help first-time homebuyers.
