Triad home-flipping sales start 2024 with modest increase

There were 227 flipped homes during the quarter, down 13.4% from a year ago. They represented 12.5% of all home sales during the quarter, compared with 11.7% for all of 2023.

However, it took from 179 to 146 days for flippers to turn around from purchase to sell.

Flipped homes are those purchased and subsequently sold again within 12 months. The MSA consists of Davidson, Davie, Forsyth, Stokes and Yadkin counties.

Home flipping in the Winston-Salem MSA reached a record 1,660 sales during 2022, but down to 1,091 in 2023.

Those flipping the homes during the first quarter grossed on average $80,000, representing a $160,000 purchase price and a $240,000 flipped price. By comparison, the gross profit in 2023 was $85,000.

The average square footage for flipped homes was 1,437, and the median year the residence was built was 1975. The median is the number in the middle, with the same amount of numbers below and above.

About 72.7% of home flippers used cash with the purchase, while 27.3% borrowed money. About 37.9% were sold to cash buyers, while 7% were bought by buyers utilizing a Federal Housing Administration loan.

By comparison, the Greensboro-High Point MSA had 253 flipped homes, up 13.4% from the fourth quarter, but down 12.1% over the year, in the three-county metro of Guilford, Randolph and Rockingham.

Flipped sales made up 10.9% of the home sale market during the quarter.

The record is 2,102 flipped homes sold in 2004. By comparison, there were 1,229 flipped home in 2023.

Those flipping the homes in the Greensboro-High Point MSA grossed on average $74,500, representing a $150,500 purchase price and a $225,000 flipped price. The average time it took to flip a home was 167 days, compared with 172 days a year ago.

The average square footage for flipped homes was 1,332, and the median year the residence was built was 1998.

About 74.3% of home flippers used cash with the purchase, while 25.7% borrowed money. About 41.5% were sold to cash buyers, while 11.1% were bought by buyers utilizing a Federal Housing Administration loan.

“The latest numbers show that investors still face an uphill climb to clear significant profits after expenses,” Attom chief executive Rob Barber said.

“They, like others, also face tenuous times amid a housing market boom that’s cooled down over the past year.”

However, Barber said that “we now have a year’s worth of a trend showing that things have started to turn around for the flipping industry, with clear signs of increasing interest flowing into the market.”

The Charlotte-Gastonia-Concord MSA had 786 flipped homes sold during the quarter, up 1.9% from the fourth quarter, but down 29.6% from a year ago. Those sales made up 10% of the market.

Those flipping the homes grossed on average $85,010, representing a $314,990 purchase price and a $400,000 flipped price. The average square footage for flipped homes was 1,458 and median year was 1989.

The average time it took to flip a home sold was 157 days, compared with 179 days a year ago.

The Durham-Chapel Hill MSA had 149 flipped homes sold, up 16.4% from the fourth quarter, but down 27.1% from a year ago. Those sales made up 9.7% of the market.

Those flipping the homes grossed on average $69,750, representing a $287,250 purchase price and a $368,250 flipped price. The average square footage for flipped homes was 1,464 and median year was 1986.

The average time it took to flip a home sold was 157 days, compared with 179 days a year ago.

The Raleigh-Cary MSA had 411 flipped homes sold, up 36.9% from the fourth quarter, but down 12% from a year ago. Those sales made up 9.8% of the market.

Those flipping the homes grossed on average $47,750, representing a $316,000 purchase price and a $363,750 flipped price. The average square footage for flipped homes was 1,644 and median year was 1995.

The average time it took to flip a home sold was 155 days, compared with 184 days a year ago.