The latest home flipping loan data is in, and the numbers are promising! One-third of all single-family homes and condos flipped in the first quarter of this year were purchased with financing, according to ATTOM Data Solutions’ U.S. Home Flipping Report.
This is up from 31.9 percent who utilized financing in the last quarter of 2016 and 29.5 percent in the first quarter of that year. In fact, this is the highest number of home flippers who have secured loans since the third quarter of 2008!
Home flippers financed about $3.5 billion in home purchases during the first quarter of 2017. This is up from $3.3 billion in the previous quarter and up from $2.4 billion a year ago, settling at the highest level we’ve seen since the fourth quarter of 2007. This represents a nine-plus-year high!
The majority of home flipping activity is taking place out West and in the Northeast, ATTOM notes. Flippers are most actively obtaining financing in Colorado Springs, Colo. (69.3 percent); Denver (54.8 percent); Seattle (51.6 percent); Boston (51.3 percent); and Providence, R.I. (47.3 percent).
Homes flipped in the first quarter of 2017 were sold for a median price of $200,000. This represented a gross flipping profit of $64,284 (above the median purchase price of $135,716). This number is up from a gross flipping profit of $63,500 in the previous quarter, and a profit of $59,100 in the first quarter of 2016 — a new all-time high going back to the first quarter of 2000, which is as far back as the data goes.
As I mentioned last month , competition is becoming increasingly fierce among the home flipping market. This has inspired many to get creative within the fix and flip space. Be sure you’re armed with the latest numbers and potential benefits of flipping so you can supply your clients with the best information – and rates – possible.