A new report on the home flipping market shows that profits for flips around the country continue to decline despite flipped homes accounting for the largest share of sales nationwide since 2010.
During the first quarter of 2019, 7.2 percent of homes sold were flips, which the report defines as a listing sold twice within 12 months. In DC proper, 9.4 percent of homes sold in the first quarter were flips, an 18 percent drop compared to a year prior.
The DC area is not exempt from the nationwide narrative of falling flipping profits, with the gross profit of $115,000 seen in the first quarter of this year slightly lower than the $117,758 profit seen in the first quarter of 2018. Despite healthier-than-typical profits in DC proper, the profit drop is even more pronounced, going from $194,250 in the first quarter of 2018 to $163,250 in the first quarter of this year. In terms of the gross return on investment (ROI), DC flippers enjoyed an ROI of 73.6 percent a year ago, but only 47.3 percent during the first quarter of this year.
Note -- This study 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/more-flips-fewer-profits-the-latest-on-the-flipping-market/15513.
Most Popular... This Week • Last 30 Days • Ever
The preferred mortgage product among most home buyers is the fixed-rate mortgage. How... read »
The development for four parcels at The Yards from Brookfield Properties and the Menk... 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 »
Plans for the New York-based eatery appear to be moving forward.... read »
The concept includes 14 lanes for bowling, a 1,200 person concert venue, a craft bar ... 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