West Phoenix Among Nation’s Top Home Flipping Rates
A neighborhood in west Phoenix had one of the nation’s highest home flipping rates last year.
In zip code 85031, more than 20 percent of homes bought last year were quickly resold for a profit. The flipping rate for the area between 43rd and 59th avenues and Thomas and Camelback roads was more than twice the rate for the entire metro area.
The 21.5 percent rate tied with the Compton area of Los Angeles for the 15th highest flipping rate in the country. The 38121 zip code in Memphis had the highest rate at 29.5 percent. Nationally, the flipping rate was 5.6 percent.
“Just about 9 percent of all the homes sold out there [metro Phoenix] were flips,” said Todd Teta, ATTOM’s chief product officer.
He said last year’s flipping rate of 9.1 percent is about half the rate from five years ago. Gross profits are also down — about 10 percent compared to the year before.
“It’s really a third of the money that was made going away year over year,” Teta said. “That’s more pronounced than we would see elsewhere.”
He said the decline is due to a slowdown in the growth of home prices.
“Prices were appreciating heavily in the early part of the year and even going back into 2017, and are now flattening,” he said.
Highlights From ATTOM 2018 Home Flipping Report
- National rate: 5.6 percent.
- Metro Phoenix rate: 9.1 percent.
- Average national gross profit $65,000.
- Average metro Phoenix gross profit: $39,000.
- Median purchase price: $201,000.
- Median flipped sold price: $240,000.
- Phoenix zip code with 20.1 percent rate: 85031.