Home flipping is down significantly in the DC region over the last year, according to a new report, but in certain areas of DC proper, profits are up.
Overall, home flipping fell 31% in the area in 2021, according to the latest ATTOM Data Solutions report, with the 3,925 units flipped representing 3.4% of all units sold that year. In DC proper, 457 homes were flipped, representing 4.6% of units sold and reflecting a 36% year-over-year drop.
The gross return on investment (ROI) for home flips in DC last year fell sharply -- from 62.5% to 43.8% -- however, among the 15 zip codes that saw at least ten homes flipped, seven saw profits increase.*
The 20019 zip code, which includes neighborhoods like Deanwood, Lincoln Heights, and Fort Dupont, continued to be the District's flipping epicenter, with a total of 87 flips accounting for 14% of the homes sold during the year. Nevertheless, these were still 36% fewer flips year-over-year, and the zip code is no longer one of the city's most profitable for flipping activity.
That title belongs to the 20008 zip code (Massachusetts Avenue Heights, Connecticut Avenue corridor, Forest Hills), where the 11 flips in 2021 grossed a median ROI of 97.4%. Flipped houses in 20008 were purchased for a median of $836,000 and sold for a median of $1.65 million, leading the city with a gross profit of $814,000.
There were only two zip codes in the city that saw a year-over-year increase in flipping activity: 20007 and 20016. The 24 flips in the former, which encompasses Georgetown, Berkley and Foxhall Village, were a 52% year-over-year increase, although gross profits and ROI both dropped over the same period. The 20016 zip code (Cathedral Heights, Tenleytown, Spring Valley) saw an 11% increase in flips, with a total of 13 in 2021, and was also the second most-profitable zip code citywide with a gross ROI of 80.3% and a gross profit of $735,000.
Note — The report does not factor in renovation costs when calculating the ROI, although experienced flippers estimate those to be anywhere from 20-33 percent of the original purchase price. Arlington County did not have enough flips for data to be included.
*In some zip codes where profits increased year-over-year, 2020 data may represent fewer than 10 flips.
This article originally published at https://dc.urbanturf.com/articles/blog/as-home-flipping-drops-in-the-dc-region-profits-remain-high-in-dc/19463.
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