Home flippers in Pennsylvania are getting the most bang for their buck.
Investors in Pennsylvania during the first quarter raked in a gross return on investment on their flips of 79 percent, the biggest profit margin among the states, according to data from research firm ATTOM Data. However, ROI was down in Pennsylvania from a year ago, when it was about 88 percent — the second highest after Delaware.
Returns on investments were also down in the first quarter on a national level. Investors notched 25 percent profit margins, which was about seven percentage points lower than the same time the year before.
In general, the share of home flipping deals among all sales is down across the country: 8.3 percent of home sales in the U.S. were classified as flips, according to ATTOM. That’s 5 percent lower year over year, though it’s 12 percent higher than the quarter before.
The state that recorded the highest share of home flips in the first quarter was Georgia. About 14 percent of transactions in the Peach State were quick resales, which works out to more than 5,300 deals — the fourth-most among the states. Georgia’s share rose 7 percent from the year before and 16 percent from the quarter before.
Still, both Georgia’s and the U.S.’s number of flips in the first quarter are far from their peaks: In the second quarter of 2006, Georgia recorded more than 17,200 flips. Home flipping in the U.S. peaked in the first quarter of 2022, with almost 126,000 flips. There were about half as many in the first quarter across the country.
Georgia also ranked in the lower half of the states in terms of profit margins. The state’s gross return on investment in the first quarter was 16 percent, down from about 21 percent the year prior.
Flippers recorded the lowest gross return on investment in Idaho, of about 9 percent. However, that was an improvement from the year before, when the state was the only one in the country where investors lost money on such deals.
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