The Dallas Morning News - Steve Brown - 9 March 2017
House flipping is heating up in North Texas.
The number of houses purchased and quickly sold by investors rose more than 20 percent in Dallas-Fort Worth last year, according to a report by Attom Data Solutions.
And nationwide, home flipping was at its highest level in nine years, with over 193,000 properties sold. Home flips across the U.S. were 3.1 percent higher last year compared with 2015.
Attom Data Solutions based its report on properties that were bought and resold within a 12-month period. The houses may have been purchased and remodeled.
"Home flipping was hot in 2016, fueled by low inventory of homes in sellable or rentable condition along with a flood of capital — both foreign and domestic — searching for the returns and stability available with U.S. real estate," Daren Blomquist, senior vice president at ATTOM Data Solutions, said in the report.
"The combination of more home flips and a greater share of financing for flip purchases resulted in a 19 percent jump in the estimated dollar volume of financing for home flip purchases, up to $12.2 billion for the flips completed in 2016."
Although home flips rose 20.9 percent in D-FW last year, North Texas still has a small number of the transactions compared to many markets.
Attom Data Solutions estimates that about 4 percent of total residential transactions in the D-FW area were flips in 2016. That added up to about 4,246 properties.
Some of the hottest areas for home flips in 2016 were in metro areas in Tennessee, California and Florida.
Almost 12 percent of the home sales in Memphis were to flippers, Attom Data Solutions reports.
Homes across the country sold by flippers last year went for a median price of $189,900 — a gross profit of $62,624 above the original median purchase price.
North Texas home sales are at an all-time high, with more than 6,900 preowned single-family houses changing hands last month and more than 100,000 sales in 2016.
But a lack of properties for sale and soaring prices — up 13 percent so far this year — make it harder for investors to take advantage of the market.