FAST FIVE: House Flipping Profits And ROI Plunge Across The Country, Says New Report
ATTOM Data Solutions published a new report called Q1 2019 US Home Flipping Report, which shows house-flipping volume rebounded across the country earlier this year as gross profits and return on investment plunged.
This means investors, with some of the highest confidence levels in years, overlooking the economy cycling down into 2H19, are in a state of mania as they indiscriminately flip anything they can find.
This means flipping profit for investors are quickly compressing, with the lowest average gross flipping profits since 1Q16.
Therefore, if investors are seeing profit margins drop, they may be acting now and selling before price increases drop even more,” Teta added.
As Zerohedge readers would know, compressing margins for house flippers is a 'canary in the coal mine' that could suggest the overall house market will continue to deteriorate into 2020.