Real Estate Alert: Home Flippers Getting Burned In Key Markets Highlighted On HGTV Reality Shows
Real Estate Alert! Amateur home-flippers are getting burned. Especially on fixer-uppers. Contrary to what HGTV shows are telling you. Real estate markets highlighted on HGTV reality shows are not as profitable as they show on TV.
The ATTOM Data Solutions’ third-quarter 2019 U.S. Home Flipping Report states returns on home flips stood at the second-lowest point since 2011.
Todd Teta, chief product officer at ATTOM Data Solutions told Housingwire:
56,566 single-family homes and condos were flipped in the third quarter of 2019 according to the ATTOM report. This is down 12.9% from the previous quarter and down 6.8% from a year ago. These drops marked the largest quarterly and annual drops since the third quarter of 2014.
Activity and ROI declined. Home flipping during this period averages a gross profit of almost $65,000. This up 3.5% from a year ago. However, that wasn’t enough to keep up with initial home prices.
The report also claims the average gross profit only translated into a 40.6% return on investment compared to the original acquisition price. This is down from a 41.1% gross flipping ROI in the second quarter of 2019 and down from a margin of 43.5% in the third quarter of 2018.
But it’s not bad news for everyone.
Home flippers are doubling their money in rust belt cities like Pittsburgh and Scranton, Pennsylvania. As well as Flint, Michigan, and Cleveland.
However, if you’re looking to flip a home in areas highlighted on HGTV shows expect low or no-existant ROIs. Cities like Raleigh and Austin, Texas are performing horribly. You can expect the smallest ROI in Phoenix and Las Vegas.
Also, check out these articles:
Amateur Home Flippers Get Harsh Wake-Up Call
Are HGTV Reality Shows Fake? You Betcha! Fake As A $3 Bill
Get Rich Quick Seminars Endorsed By HGTV Stars Halted By The FTC
HGTV Star Nicole Curtis Facing Foreclosure On Two Houses
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