A new report on the home flipping market shows that, in DC, both flips and profits are back on the rise.
According to the latest ATTOM Data Solutions report, 9.5% of houses sold in DC proper during the second quarter of 2020 were flips, a 6% increase from the second quarter of 2019. The 130 flips sold in the city were purchased for a median price of $362,500 and sold for a median price of $585,000, yielding a gross profit of $222,501. For context, gross profits were $200,000 in the second quarter of 2019.
The gross return on investment (ROI) citywide for flips was 61.4% in the second quarter, less than the 67% gross ROI observed in the first quarter of 2020, but higher than the 59.7% gross ROI observed in the second quarter of 2019.
Flips continue to be concentrated east of the Anacostia River, and there were only five zip codes where more than 10 houses were flipped during the second quarter. The 20019 zip code that encompasses most of Ward 7 led the way with 27 flips, totaling nearly 23% of houses sold in the zip code in the second quarter. Flipped houses in 20019 were purchased at a median price of $230,000 — the most affordable initial purchase among the zip codes highlighted — and sold for a median price of $415,000, yielding the highest citywide gross ROI of 80.4%.
The 20011 zip code that includes areas like Petworth and 16th Street Heights had the second-highest number of flips, with 19 flip sales accounting for 12% of total sales in the first quarter. These yielded a gross profit of $350,000 — the highest citywide. The 20018 zip code, which includes Brentwood, Woodridge, and Fort Lincoln, had the fewest flips this quarter (10), but also seems to be getting more attention, as the number of flips were nearly 50% higher than during the second quarter of 2019. Flips in this zip code saw the second-highest gross profit, at $322,500, and the second-highest gross ROI, at 76.8%.
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.
This article originally published at https://dc.urbanturf.com/articles/blog/in-the-landscape-of-flipped-houses-in-dc-ward-7-is-king/17313.
Most Popular... This Week • Last 30 Days • Ever
The development for four parcels at The Yards from Brookfield Properties and the Menk... read »
Plans for the New York-based eatery appear to be moving forward.... read »
EDENS filed a planned unit development for a two-building residential development tha... read »
One of the more prominent features of the project will be a public plaza that will ru... read »
Foxhall is a DC neighborhood bordered by Reservoir Road, Foxhall Road, Glover Park, a... read »
To help home buyers and sellers both novice and seasoned, UrbanTurf is running a seri... read »
As home buyers get the itch to look for a home and start to venture out to open house... read »
The development will replace the 44,700 square-foot retail structure that was previou... read »
The concept includes 14 lanes for bowling, a 1,200 person concert venue, a craft bar ... read »
The zip codes that are home to Brentwood, Takoma Park and sections of Hyattsville top... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro