Real estate data company ATTOM just put out their research, Home Flipping Profit Margins Drop Again Across U.S. in Third Quarter of 2021 Even as Flipping Activity Keeps Rising, which shows ROI on home flipping has dipped in many areas of the country.
Fortunately, for real estate investors in Pennsylvania the data showed some markets continued to remain very hot. The team at ATTOM has a strong database of transactions writing, “4,766 single-family houses and condominiums in the United States were flipped in the third quarter. Those transactions represented 5.7 percent of all home sales in the third quarter of 2021, or one in 18 transactions.”
The aggregate data was interesting in that it showed, Among all flips nationwide, “the gross profit on typical transactions (the difference between the median sales price and the median paid by investors) stood at $68,847 in the third quarter of 2021.” Though their data shows the gross profit is continuing to fall across much of the country.
Their research shows slower property appreciation is also contributing to the decline in ROI.
What really stood out for the Pennsylvania real estate investor is 3 markets which were mentioned as having the best returns in the country.
The ATTOM team wrote, “Markets with the largest returns on investment during the third quarter of 2021 on typical home flips were Buffalo, NY (ROI of 130.6 percent); Oklahoma City, OK (127.6 percent); Florence, SC (125.8 percent); Pittsburgh, PA (124.6 percent) and Scranton, PA (123.2 percent).
Aside from Buffalo, Oklahoma City and Pittsburgh, the largest investment returns in the third quarter among metro areas with a population of at least 1 million were in Baltimore, MD (90.6 percent) and Philadelphia, PA (88.7 percent).”