The Dallas Morning News published an article this morning with the headline:  "Flipping D-FW Houses Getting Tougher".  The article references the Home Flipping Report for the third quarter of 2017, published by ATTOM Data Solutions.   
 
Here are a few takeaways...
 
First, the number of homes being flipped across the country is relatively the same as it was this time last year.  The national rate of homes flipped remains close to 5%.  So, no huge increase or decrease in home flipping from a nationwide perspective.  
 
Second, about half (47%) of the country's metropolitan areas had an increase in the rate of flipping, including Dallas-Fort Worth and San Antonio.  The report listed the following leading metropolitan areas that posted a year-over-year increase in home flipping rates of at least 10%.
  • Indiapolis, Indiana  (up 51%)
  • Buffalo, New York  (up 47%)
  • Louiseville, Kentucky  (up 22%)
  • San Antonio, Texas   (up 22%)
  • New York, New York   (up 21%)
  • Cleveland, Ohio   (up 17%)
  • Birmingham, Alabama    (up 17%)
  • Charlotte, North Carolina    (up 15%)
  • Dallas-Fort Worth, Texas    (up 14%)
  • Rochester, New York     (up 13%)
  • Detroit, Michigan    (up 12%)
  • Hartford, Connecticut    (up 11%)
  • Memphis, Tennesse    (up 10%)
Third, the article listed the common challenges that home flippers are facing. 
  • low inventory of distressed properties
  • increasing competition from flippers
  • greater repair costs
  • higher acquisition costs

Last, and maybe the most interesting of all.  The article quotes very high average gross flipping profits of $66,448, representing an average of 47.7% return on investment.  These numbers seem high to me. 

What do you think?  Is home flipping getting tougher in DFW?  Comment or email us your thoughts.  info@avondale-im.com

Sources:

Q3 2017 U.S. Home Flipping Report

Dallas Morning News - Flipping Houses Getting Tougher

 

 
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