Apr 15, 2024 - Real Estate

Fewer home flips in Raleigh as profits plummet

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 activity and profits are sinking in Raleigh, per a recent report from real estate data company ATTOM.

Why it matters: Lack of options and affordability are even pushing investors out of this wild market.

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: We're past the house-flip peak of 2021 in Raleigh, but rates are still up 111% from a decade ago, and 40% from 2018, ATTOM data show.

What's next: Buying a fixer-upper is one way for wishful Raleigh homeowners to squeak out a deal. The typical fixer-upper costs $134,748 less than a turn-key home in the area, according to a StorageCafe study.

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