Apr 22, 2024 - News

House-flipping dips in metro Denver

Data: ATTOM; Note: A flip is defined as any transaction between an unrelated buyer and seller within 12 months of a previous transaction; Chart: Axios Visuals

House flipping in metro Denver fell last year, mirroring a national trend.

Why it matters: A recent report from real estate data company ATTOM shows the metro area saw a 20% drop in homes flipped from 2022 to 2023, signaling the practice is becoming less attractive to investors.

By the numbers: Metro Denver investors flipped 3,335 homes last year, making up about 9% of home sales, according to the report.

What they're saying: A drop in home flipping is likely driven by tight housing stock and dwindling returns for investors, Rob Barber, CEO at ATTOM, said in a statement.

The big picture: In 2023, house flipping activity nationwide dropped 29.3%, the biggest annual decline since 2008, according to the report.

  • Return on investment, at 27.5%, hasn't been this bad since 2007. The ROI was down from 28.1% in 2022 and 35.7% in 2021.

The intrigue: Buying a fixer-upper is one way for wishful homeowners to squeak out a deal in some U.S. markets, though it may be harder in Denver.

  • The median price of a fixer-upper in Denver is $20,900 less than the typical home, per a recent StorageCafe study — placing the city 47th among the 51 cities in the study.
  • However, those savings skyrocket for homes in Colorado Springs ($136,500) and Aurora ($110,980).
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