House flipping may be starting to flop in Dallas-Fort Worth as higher interest rates drain the froth out of the market.
Quick-turnaround home sales declined 25 percent in the second quarter from an all-time high to start the year, according to the Dallas Morning News, citing data from Attom Data Solutions.
In the first quarter of 2022, the DFW metroplex’s flipping volume was double that of the year before, and even after the second-quarter drop, it’s still 43 percent of the same period in 2021.
Average profits in the second quarter were also higher than the year before — twice as high, actually. DFW house flippers averaged a 17.4% return on investment, which is double that seen from April through June of 2021. That beats the statewide average of 16 percent, just over half the national average of 31 percent.
“The big question is whether the fix-and-flip market will begin to lose steam as overall home sales have declined dramatically over the past few months and the cost of financing has virtually doubled over the past year,” said Rick Sharga, Attom’s executive VP of market intelligence, in the firm’s report.
That could be bad news for DFW’s home flippers — especially ones who are on camera.
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