In 2019, More Flips and Less Profits in DC Proper

• March 6th 2020

by Nena Perry-Brown

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Last year, home flipping data in DC showed a market where more houses were being flipped even as profits fell. Now, ATTOM Data Solutions Year-End Home Flipping Report shows that this was not a fluke.

In 2019, 620 flips were sold in DC proper, per the report, representing 9% of total home sales in the city. However, the return on investment (ROI) for these flipped houses fell to 56% from 70% in 2018. 

Flipped homes in DC in 2019 were purchased for a median price of $348,180, then resold for a median price of $544,744 for a gross profit of $196,564; the gross profit was $210,000 in 2018. For added context, one-third of those flips were initially purchased with cash.

As the table above reveals, flipping profits vary from zip code to zip code in DC, with 20019 once again standing out. Although slightly fewer homes were flipped last year than in 2018, the 133 flipped homes sold in 20019 accounted for nearly 24% of the sales in that zip code. This is unsurprising considering that flips in this section of Ward 7 grossed a 93% return on investment last year and a 100% ROI in 2018.

The Petworth-predominant 20011 zip code had the second-most home flips citywide, with 107 sold last year accounting for nearly 14% of total sales. ROI was relatively flat in this zip code, as it was in the 20002, 20017, 20032, and 20018 zip codes.

The 20002 zip code, which covers most of the Northeast quadrant southwest of New York Avenue and the Anacostia River, saw the biggest drop in flipped homes citywide, with the 72 homes sold an 11% decrease from last year. The 20032 zip code of Congress Heights, where 36 flipped homes sold last year accounted for nearly 19% of sales, grossed the second-highest ROI citywide at 88%.

Note: Gross flip profits and ROI do not account for the costs of renovation, which experienced flippers estimate to be anywhere from 20-33 percent of the original purchase price.

This article originally published at https://dc.urbanturf.com/articles/blog/more-flips-and-less-profits-in-2019-for-dc-proper/16549.