With home price appreciation slowing and buyers becoming more choosy - house flipper's could see even more declines in their profits. As competition eases, the white-hot housing market that house flippers helped overheat is now cooling. While historically low mortgage rates persuaded millions of Americans to purchase homes over the last two years, pandemic-era deals are over and buyer demand is waning. "Rising mortgage rates have had a major impact on affordability, and appear to be having an immediate effect on both demand and actual home sales," Sharga said, adding that it's having a predictable impact on investor profit margins. Despite the increase in investor activity, the amount of gross profit that fix-and-flip investors made on transactions decreased to the lowest point since 2009, a time when the real estate market was still reeling from the Great Recession. "The bad news is that rising mortgage interest rates are beginning to slow down home price appreciation rates, and buyers have become more selective – and less willing to outbid other buyers for properties they're interested in."ĭata from ATTOM shows that out of every ten homes sold in Q1, at least one was a flip. "The good news for fix-and-flip investors is that demand remains strong from prospective homebuyers," Rick Sharga, executive vice president of market intelligence at ATTOM, said in a statement, referring to the process of purchasing, renovating, and selling a home within 12 months for a profit. Account icon An icon in the shape of a person's head and shoulders.
0 Comments
Leave a Reply. |