EDITOR NOTE: In the years leading up to the Great Recession, the topic of “house flipping” would’ve given anyone the impression that it was America’s favorite pastime. Everyone was talking about it. Many actually did it. Then the housing crash took hold and profit margins for flippers who were still solvent took a major dive. Well, house flipping is back. Though large institutions continued this practice through the Great Recession and beyond, 2020 may prove to be a lucrative year for new house flippers and savvy investors, as high unemployment may have a significantly negative effect on home prices. And of course, we have low borrowing costs. Anyone up for investing in real estate?
There was a frenzy of house flipping in America before the coronavirus pandemic, a new study shows.
In the first three months of 2020, flippers rehabbed homes at the highest rate in 14 years — but profit margins fell to the lowest levels since 2011, according to ATTOM Data Solutions, a California-based property data company.
“Home flipping has gradually taken up a larger portion of the housing market over the last couple of years. But profits [were] down and [were] lower than they’ve been since the dark days following the Great Recession,” said Todd Teta, chief product officer at ATTOM Data Solutions, warning that the pandemic will impact data for the second quarter.
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