According to ATTOM's Q1 2024 U.S. Home Resale Report, there was a significant increase in home resale activity in the first quarter of 2024. During this period, 67,817 single-family homes and condominiums were resold in the U.S. This represents 8.7% of home sales from January to March, or roughly 1 in 12 homes.
Rising home resale rates
ATTOM's analysis found that the share of resale homes is rising from 7.7% in the fourth quarter of 2023 to 8.7% in the first quarter of 2024. This would be the second consecutive quarterly increase but is down from the 9.8% recorded in the first quarter of 2023.
This steady increase highlights a robust market for home flippers, driven by a variety of factors, including favorable economic conditions, increased buyer demand and improved access to financing for renovations.
Increased investor returns
As resale rates have risen, so have investor returns. In the first quarter of 2024, home flippers earned an average gross profit of 30.2% before expenses on homes sold. This trend marks the third quarter of profit margin growth in four quarters, reversing a six-year decline. The profitability of home flipping has been buoyed by rising home prices in many markets, allowing home flippers to sell at higher prices relative to their purchase and renovating costs.
Profit rate
Typical profit margins on home resales in the first quarter of 2024, based on the difference between the median purchase price and the resale price, were about 25 percentage points lower than their 2016 peak.
Even though renovation, mortgage and property tax costs may offset these gains, margins were higher in Q4 2020 and above the 10-year low of 25% in Q1 2023. This recovery in margins suggests that flippers are becoming more adept at controlling costs and timing sales to maximize revenue.
gross profit
Nationwide, gross profit from a typical property flip rose to $72,375, but is still below the high of about $80,000 in 2022. That figure is up from $65,000 in the fourth quarter of 2023 and about $10,000 higher than last year's low point. The increase in gross profit reflects a combination of rising resale prices and more efficient renovation processes, allowing flippers to capture a bigger share of market appreciation.
Resale trends by region
Of the 173 metropolitan statistical areas across the United States, 134, representing 77.5% of the areas analyzed with sufficient data, saw an increase in home resales as a percentage of total home sales from Q4 2023 to Q1 2024. Most of the declines observed were small, generally less than 2 percentage points.
Metropolitan statistical areas included in the analysis have populations of 200,000 or more and recorded at least 50 home resales in the first quarter of 2024. This widespread increase in resale activity highlights the widespread nature of this trend, affecting both larger and smaller markets across the country.
County-level analysis
Home resales accounted for at least 10% of all home sales in 284 counties across the United States in the first quarter of 2024. This figure represents a notable increase from 22.7% in the fourth quarter of 2023, when 31.5% of the 902 counties analyzed had 10 or more resales. The significant increase in the number of counties with high resale rates indicates that resales are becoming more common and geographically diversified, providing opportunities for investors in a variety of locations.
Factors that lead to high resale rates
Several factors contribute to the high resale rates observed in these top counties.
Economic Growth: A strong local economy with growing jobs and incomes supports a growing demand for housing, making it easier for remodelers to sell renovated homes quickly and profitably. Housing Supply Constraints: In markets with limited housing supply, buyers are willing to pay a premium for move-in ready homes, giving remodelers who can provide quality remodeling an advantage. Remodeling Expertise: Investors in these counties often have extensive experience and networks that allow them to manage remodeling projects efficiently and cost-effectively. Financing Availability: The availability of affordable financing for both purchasing and remodeling allows more investors to participate in remodeling, increasing overall activity.
Top 10 Counties with Highest Home Resale Rates
This in-depth analysis of ATTOM's latest U.S. Home Resale Report reveals the top 10 counties with the highest home resale rates in the first quarter of 2024. Among counties with 10 or more home resales in the first quarter, the highest resale rates were observed in the following counties:
Cobb County, Georgia: 23.5% Hickman County, Tennessee: 20.3% Houston County, Georgia: 20.1% Clayton County, Georgia: 19.6% Douglas County, Georgia: 19.5% Hopewell City County, Virginia: 19.0% Bibb County, Georgia: 18.6% Botetourt County, Virginia: 18.1% Loudoun County, Tennessee: 17.3% Alamance County, North Carolina: 17.2% Cobb County, Georgia
Cobb County, Georgia leads the nation with a resale rate of 23.5%. The county's proximity to Atlanta, along with a strong local economy and growing population, make it an attractive market for home flippers. Investors can benefit from high demand and rising home prices, resulting in strong profit margins.
Hickman County, Tennessee
In Hickman County, Tennessee, the resale rate hit 20.3 percent, as rural charm and affordable real estate prices have attracted investors looking to take advantage of the county's growing appeal to new residents seeking a quieter life away from urban areas.
Houston County, Georgia
Houston County, Georgia, had a resale rate of 20.1 percent. The presence of Robins Air Force Base has created a booming job market in the county, and a constant influx of potential homebuyers creates a favorable environment for resellers.
Clayton County, Georgia
Clayton County, Georgia, recorded a resale rate of 19.6 percent. The county has a high resale rate due to its affordable home prices and proximity to Atlanta, with investors targeting first-time homebuyers and those looking for more affordable housing options.
Douglas County, Georgia
In Douglas County, Georgia, the resale rate was 19.5 percent. The county's strategic location along a major highway and its growing economy make it a popular spot for investors looking to flip homes for a profit.
Hopewell City County, Virginia
In Hopewell City County, Virginia, the resale rate reached 19.0 percent. The county's historic charm and redevelopment efforts are attracting investors looking to revitalize older properties and sell them at a high price.
Bibb County, Georgia
Bibb County, Georgia, has a resale rate of 18.6 percent and benefits from the economic activity in its county seat, Macon. The local economy, buoyed by healthcare, education and manufacturing, supports strong housing demand.
Botetourt County, Virginia
Botetourt County, Virginia, had a resale rate of 18.1 percent. The county's beautiful scenery and outdoor recreational opportunities attract both homebuyers and investors looking to capitalize on its growing appeal.
Loudoun County, Tennessee
In Loudoun County, Tennessee, the resale rate was 17.3 percent. The county's proximity to Knoxville and lakeside attractions makes it an attractive market for resellers looking to fill the demand for vacation and second homes.
Alamance County, North Carolina
Alamance County, North Carolina, rounded out the top 10 with a resale rate of 17.2 percent. The county's location between Raleigh and Greensboro and its growing economy make it an attractive market for investors looking for profitable opportunities.
See also:
5 reasons why you shouldn't flip your house