David McNew/Getty Images
Profits from home resales continued to recover in the second quarter, according to ATTOM.
This is because home prices have increased between the time the property was purchased and the time it was sold.
However, the number of home resales has decreased, accounting for 1 in 13 sales.
ATTOM reported Thursday that soaring U.S. home prices this year helped boost profits for home flippers in the second quarter.
Gross profit from a typical home flip increased to $66,500 in the second quarter, up 18% from $56,250 in the first quarter, but still well below the 2022 record high of $102,063.
This equates to a 27.5% return on investment, still below the all-time high of 61%, but up from 22.9% in the first quarter and 22.3% in the fourth quarter.
“The fortunes of investors looking to make a quick buck by flipping homes are showing signs of improving after a long and unusual period in which their stock prices fell while the broader market rose,” Atom CEO Rob Barber said in the report.
The recovery comes after the average price of a single-family home jumped 10% during the spring home-buying season.
High demand and low inventory in the housing market have led to rising home prices throughout the year.
Even as mortgage rates are also soaring, current homeowners are hesitant to sell and forgo low interest rates, exacerbating the supply shortage and locking many middle-income homebuyers out of the market.
But while profits from home resales grew, activity declined throughout the quarter. Home resales accounted for about 8% of total home sales, down from 9.9% in the first quarter and the lowest share since 2021.
Read the original article on Business Insider