Phoenix AZ home flipping rate among top 5 in the U.S.
Phoenix is one of five metro areas with at least 1 million people that can boast the highest home flipping rates in 2017.
ATTOM Data Solutions recently released its Q4 and Year-End 2017 U.S. Home Flipping Report, revealing that Phoenix’s flipping rate last year was 8.5 percent. Fifty-two metro areas were analyzed for the report.
There were 207,088 homes flipped in 2017, up 1 percent from the 204,167 home flips in 2016 to the highest level since 2006. The 207,088 homes flipped last year represent 5.9 percent of all single-family home and condo sales, up from 5.7 percent of all sales in 2016. According to the ATTOM report, this is the highest level since 2013.
Daren Blomquist, senior vice president at ATTOM Data Solutions, says the rise in home flipping over the past three years is not like the frenetic “flipping frenzy” of a decade ago.
According to Blomquist, flippers are conducting their flips more rationally, indicated by average gross flipping returns of 50 percent over the last three years. Compare this rate to the average gross flipping returns of just 31 percent, between 2004–2006, the last time we saw more than 200,000 home flips in consecutive years.
Financing for flippers has become more readily available in recent years, Blomquist says, but 65 percent of flippers still used cash to buy homes for flipping in 2017. Back in 2004– 2006, 63 percent of flippers were financing their flip properties.
The total dollar volume of financed home flip purchases in 2017 was $16.1 billion, the highest level since 2007 and up 27 percent from $12.7 billion in 2016.
Phoenix AZ home flipping rate