Home Flipping Loan Volume Hits Nine-Year High
The home flipping market niche continues to evolve, even as a nine-year high was reached in loan volume, says HousingWire. In the first quarter of 2017, finance volume for “flipped” homes, those sold in an arms-length transfer for the second time in 12 months, reportedly reached its highest point in nine years. Yet, other data point to an evolution in the flipper market.
Flipped transactions down, financing up
The number of homes flipped in the first quarter, 43,615 according to ATTOM Data Solutions, actually fell. The number of sales was down eight percent from the previous quarter and six percent from a year ago. It’s said to be the lowest quarterly number of flips since the first quarter of 2015. As a share of all single-family and condo home sales, flipped homes were unchanged from a year ago at 6.7 percent.
However, the number of flippers using standard home loan financing has ticked up, to 33.3 percent for the first quarter. This is the highest level since financing for flipped homes reached 37.6 percent in the third quarter of 2008.
“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,” Daren Blomquist, senior vice president for ATTOM, noted.
Seattle flippers appear confident
The Seattle metropolitan area reportedly stood out in ATTOM’s research. “While the number of home flippers across the nation is not growing, the opposite is true in Seattle,” said Matthew Gardner, chief economist for Windermere Real Estate. More than half of Seattle-area flipped homes were reportedly purchased through financing in the first quarter, a development Gardner attributed to a feeling of low risk among flippers.Posted on: Thursday, June 15, 2017