Home-Flip Financing Posts 9-Year High

Blomquist says average home flipping returns decreased for the second consecutive quarter.

IRVINE, CA—ATTOM Data Solutions said Thursday that loan volume for home flipping reached a nine-year high in the first quarter. At the same time, the number of homes flipped during Q1 represented the lowest quarterly volume in two years, even if flips’ share of all single-family and residential condominium sales ticked upward from the previous quarter.

“The business of financing for home flippers continued to grow in the first quarter of 2017 even as the home flipping rate plateaued compared to a year ago and average home flipping returns decreased for the second consecutive quarter,” says Daren Blomquist, SVP at Irvine, CA-based ATTOM. “Home flippers financed an estimated $3.5 billion in purchases for homes flipped during the quarter, up from $3.3 billion in the previous quarter and up from $2.4 billion a year ago to the highest level since the fourth quarter of 2007, a more than nine-year high.”