Is it getting much harder to profit on house flipping today? According to CNBC’s Diana Olick, home prices are high, there are very few distressed or foreclosed properties available to buy cheaply, and the competition among investors is fierce. Interestingly, citing data from ATTOM Data Solutions, she says the dollar volume of financed flip purchases in Q2 2019 jumped 31% annually, from $6.4 billion to $8.4 billion. This is the highest level since Q3, 2006.
“We have been seeing a steady incline in total financed purchase dollar volume every quarter since about 2015 and now we are reaching pre-recession dollar volume highs,” said Todd Teta, chief product officer at ATTOM Data. “With profit margins dropping on home flips, an increase in financing could up the risk for investors who have to factor interest payments into their deals.”
Click here to read the full story at CNBC.com.
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