Real Estate News: Dallas Flips in Two Zips Average Higher Profit Than Nation

How much better did the 75243 zip code in Dallas fare in flipping profit than the rest of the nation? How did home sales look for North Texas in August? How are home sales and prices looking across the state?

We’ll answer all that and more in this week’s real estate news roundup.

HOME FLIPPING PROFITS DOWN NATIONALLY, HOW DO DFW ZIP CODES COMPARE?

While the national average profit for home flipping is about $65,520, the average profit in the 75243 zip code of Dallas is actually quite a bit higher at $78,250, ATTOM Data Solutions’ 2Q 2018 U.S. Home Flipping Report revealed. Dallas’s 75228 zip code did even better, with a gross profit average of $83,557.

The report, which examines average gross returns on investments for specific zip codes as well as the national averages, found that the 75243 zip code also averaged 169 days from purchase to flip, with a 41.5 percent gross 2Q ROI on flips.

Fort Worth’s median ROI for the zip code 76131 was just under the national average at $62,456, with an average 150 days from purchase to flip and a 52.7 percent 2Q ROI on flips.

Perhaps the most interesting report was the 75071 zip code in McKinney, where the average time from purchase to flip was 198 days, and the average profit was negative $7,750.

Nationally, homes flipped in the second quarter of 2018 had an average gross ROI of 44.3 percent, down from 47.8 percent the previous quarter. It’s the lowest average gross flipping ROI since 2014 Q3.

A total of 48,768 single family homes and condos were flipped in 2Q at a rate of 5.2 percent of all sales, down from a 6.6 percent in Q1. Homes sold for an average of $65,520 more than purchase price, which is a dip from the $69,500 in average profit the previous quarter.

“Fewer distressed sales are limiting the ability of home flippers to find deep discounts even while rising interest rates are shrinking the pool of potential buyers for flipped homes,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “These two forces are squeezing average home flipping returns, pushing investors to leverage financing or migrate to markets with more distressed discounts available to achieve more favorable returns.”

ATTOM also reported that 32.3 percent of homes flipped in 2Q were purchased via distressed sale, down from 35.8 percent in 1Q.

MEDIAN HOME PRICES UP AND CLOSED SALES DOWN ACROSS DFW

Median home prices were up across North Texas in August, but the percentage of closed sales were down, according to the MetroTex Association of REALTORS’ latest report.

HOME SALES AND MEDIAN HOME PRICES UP ACROSS STATE

Home sales and median home prices continued to rise in the second quarter of 2018, the 2018-Q2 Texas Quarterly Housing Report released today by the Texas Association of REALTORS® revealed last week.

Statewide, 100,227 homes sold in 2Q, a 2.8 percent increase year-over-year. The median home price increased 4.4 percent to $238,000, and 59.4 percent of all homes sold were priced between $100,000 and $299,999.

Active listings increased 0.3 percent in 2Q YOY to 110,300 listings. Homes spent an average of 87 days on the market, one day less than 2Q 2017. Months of housing inventory decreased to 3.9 months — well short of the desired 6 or 6.5 months that indicates a balance of supply and demand.