The typical home resold in the Lake Charles area sells for double what investors originally paid, according to the data.
According to the 2023 U.S. Home Flip Report from ATTOM, a national curator of land, property and real estate data, the Lake Charles area was once again the best market for home flipping in Louisiana and the third best market out of more than 200 MSAs in the U.S., while the national market for home flipping declined.
The data showed that the typical gross return on investment for renovated homes there was 107.8%, with a median purchase price of $80,000 and a median resale price of $166,256, down from 2022, when the typical gross return was 122.5%.
121 homes have been resold this year, accounting for 6.3% of all homes sold in the region, which is down 4.4% from 2022.
In the Lafayette area, the average gross profit margin on 246 renovated homes was 58.3%, up slightly from 42.7% in 2022, according to the data. Of homes sold this year, renovated homes accounted for 6.9%, up 9% from 2022.
ATTOM reported that activity slowed nationwide in 2023, with total sales of single-family homes and condominiums down 29.3% year over year, the biggest drop since 2008. The typical ROI for homes was 27.5%, down from 28.1% in 2022 and 35.1% in 2021, the lowest since 2007.
Investor returns fell for the sixth time in the past seven years as the median price of resold homes fell slightly faster (4.4%) than the median price paid to buy a property (4%).
“2023 is an increasingly challenging environment for home flipping across the U.S.,” said Atom CEO Rob Barber. “Whether the overall market has soared in recent years or only seen modest gains, investors have missed out.”