Gross profits for investors averaged $60,526 in the second quarter, a significant dip from the $71,000 recorded during the same period last year. According to Rob Barber, CEO of ATTOM, the data reflects a persistent downward trend in both margins and overall returns across the majority of metropolitan areas. The flipping rate declined quarter-over-quarter in 162 of the 186 markets analyzed, signaling a cooling environment for rapid property turnover.
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US Home Flipping Profitability Slides for Second Consecutive Year
The typical profit margin for flipped homes in the United States fell to 21.5 percent during the second quarter of 2026, marking a steady two-year decline. While market activity saw 77,991 properties change hands, the flipping rate dropped to 6.2 percent of all nationwide home sales as returns continue to narrow.
Market performance remains tethered to entry price, with the most favorable outcomes occurring for properties purchased between $100,000 and $200,000, which yielded a 28 percent return. Conversely, the lower end of the market proved hazardous, as homes acquired for $50,000 or less resulted in a typical loss of $15,000. Despite the broader cooling, inventory velocity improved slightly, with the typical flip taking 161 days to complete, down from 165 days in the previous quarter. Furthermore, the share of flipped homes sold to buyers utilizing FHA-backed mortgages saw a minor uptick to 10.7 percent.
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