As prices and construction costs have risen, home flipping has dropped around much of the U.S. this year, including the DC region. But even though flipping is not as prevalent in DC as it used to be, there are still pockets where flippers are making money.
According to a new report from ATTOM, there were three zip codes in the city where there were at least 10 homes flipped in the second quarter of 2023: 20002, 20011, and 20019. The 20011 zip code (Brightwood, Crestwood, Petworth, Takoma) led the way with 23 flips, and an average gross profit of $190,000*.
The 20019 zip code (Deanwood, Marshall Heights, Benning Ridge) saw 19 flips, grossing profits of $215,000. In the 20002 zip code (Eckington, Ivy City, northeast Capitol Hill), there were just 10 flips, but those homes brought in some of the highest gross profits in the city at $490,000.
“Fortunes for investors who flip homes for quick profits are showing more signs of turning around after a long and unusual period when they went down while the rest of the market went up,” Rob Barber, CEO for ATTOM, said in a release. “However, the latest investment returns may not be substantial enough to cover the holding costs on typical deals. And it’s still too early to declare the profit downturn over, as much will depend on whether the second-quarter market surge keeps going or whether it retreats again like it did last year.”
To see ATTOM's full report, click here.
*The report identifies flips as the same property selling twice within 12 months. Gross profit is calculated as the difference between the original purchase price and the second sales price. Rehabilitation costs and associated expenses are typically 20-33% of home value after repair.
This article originally published at https://dc.urbanturf.com/articles/blog/home_flipping_drops_in_dc_but_three_zip_codes_are_still_seeing_profits/21492.
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