House Flipping In St Louis Drops 12 Percent In 2nd Quarter

There were 902 homes “flipped” in the St Louis metro area during the second quarter of 2019, or 7.5% of the total number of homes sold in the St Louis metro area during the quarter, according to data just released by ATTOM Data Solutions.  This is a decline of 12% from the prior quarter but is an 8% increase from the prior year.  As our table below shows, on a national level, house flipping accounted for just 5.9% of the homes sold during the 2nd quarter of this year, which is an 18% decrease from the quarter before and a 9% increase from a year ago.

Definition of a  “flipped” home…

For the purposes of this report, a flipped home is considered to be any home or condo that was sold during the first quarter of this year in an arms-length sale that had previously had an arms-length sale within the prior 12 months.  Since homeowners don’t tend to buy a home only to turn around and resell it within a year, when this does occur it is typically the result of an investor buying a property, renovating it, then reselling it.

  

St Louis House Flipping – 2nd Quarter 2019

St Louis House Flipping - 2nd Quarter 2019© 2019 – St Louis Real Estate News, all rights reserved

Flipped Homes in St Louis Down From Year Ago

There were 528 homes “flipped” in the St Louis metro area during the first quarter of 2019, which equated to 7.7% of the total number of homes sold in the St Louis metro area during the quarter, according to data just released by ATTOM Data Research.  This is down 14% from the 1st quarter of 2018 but does reflect a 3% increase from the prior quarter.  As our table below shows, on a national level, house flipping accounted for 7.2% of the homes sold during the 1st quarter of this year, which is a 23% increase from the quarter before and an 8% increase from a year ago.

Definition of a  “flipped” home…

For the purposes of this report, a flipped home is considered to be any home or condo that was sold during the first quarter of this year in an arms-length sale that had previously had an arms-length sale within the prior 12 months.  Since homeowners don’t tend to buy a home only to turn around and resell it within a year, when this does occur it is typically the result of an investor buying a property, renovating it, then reselling it.

  

St Louis House Flipping – 1st Quarter 2019

St Louis House Flipping - 1st Quarter 2019

The Number of Flipped Houses In St Louis Drops, As Do Profits On Them

There were 752 home “flips” in the St Louis metro area during the third quarter of this year, representing 6.5% of the homes sold during the period, according to data just released by ATTOM Data Research.  This is a decline of 7.4% from the prior quarter and a decline of 2.0% from the same quarter last year.

What is meant by “flipped” home?

ATTOM Data considers any home or condo that was sold during the third quarter of this year in an arms-length sale that had previously had an arms-length sale within the prior 12 months as well as a “flip”.  Since homeowners don’t tend to buy a home only to turn around and resell it within a year, when this does occur it is typically the result of an investor buying a property, renovating it, then reselling it.

  

House Flipping In St Louis Drops Twenty-Three Percent In 2nd Quarter

House flipping, something that has become quite popular among investors over the past few years and has even spawned several reality TV shows, continues to decline in terms of the number of flips.  This is certainly not due to a lack of interest but instead a lack of opportunities.  Many flipping opportunities are the result of foreclosures and with the mortgage delinquency rates continuing to improve resulting in declining foreclosure rates, the end result is few opportunities for investors to flip homes.

In St Louis, during the 2nd quarter of 2018, there were 835 homes flipped in the St Louis metro area, a decline of 23.0% from the quarter before and a 4.7% decline from a year ago.  This is down 32.5% from the peak during the 3rd quarter of 2005 when there were 1,237 homes flipped in St Louis.

The table below shows the 2nd quarter house flipping data for St Louis, from ATTOM Data Services and includes the median size and age of the homes flipped, as well as median time to flip,  prices and profits.

  

St Louis House Flips – 2nd Quarter 2018

St Louis House Flips - 2nd Quarter 2018

House Flipping In St Louis During 1st Quarter Drops By Sixty-Nine Percent From Year Ago

House flipping in St Louis accounted for just 2.4 percent of the home sales in the St Louis metro area during the first quarter of this year, according to data just obtained from RealtyTrac.  This is a decline a 69 percent from a year ago when “flips” accounted for 7.7 percent of all St Louis home sales.

Highlights from the 1st Quarter 2015 report:

  • There were 115 house flips during the 1st quarter of 2015
  • This was a 57% decline from the prior quarter and a 69% decline from the 1st quarter of 2014
  • Average days to flip a home during the quarter was 169
  • Average purchase price was $79,398, average sale price $101,495
  • Average gross margin on flips during the quarter was 22%
  • Average gross return on investment during the quarter was 27.8% which is down from 47.9% a year ago

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