Only 2.7% of all home sales in the first quarter of 2021 were changes, or one in 37 transactions, the lowest level since 2000.
According to a report by ATTOM, a national property database, 32,526 single-family homes and condos in the U.S. were flipped in the first quarter. That number is less than 4.8%, or one in 21 home sales in the nation during the fourth quarter of 2020. It is also less than 7.5%, or one in 13 sales, in the first quarter of 2020.
“It is too early to say for sure whether domestic fins have indeed entered a prolonged hold pattern,” said Todd Teta, ATTOM’s chief product officer. But the first quarter of 2021 certainly marked a notable recession for the currency industry, with the big drop in activity suggesting that investors may be concerned that prices have simply gone too high. After having lived through the housing boom with others for years, now they may be reconsidering. “
Gross profit on the typical home exchange nationwide, the difference between the median sales price and the median price paid by investors, dropped to $ 63,500 in the first quarter of 2021, from $ 71,000 in the fourth quarter. 2020. fell from 41.8% in the fourth quarter of 2020 to its lowest point since the second quarter of 2011.
Regionally, real estate investment declined in 70 percent of US markets. Among those metropolitan areas, defined as having at least 200,000 residents and 50 home swaps, the largest quarterly declines in the home swap rate were in Memphis, Tennessee (80% fewer), Lakeland, Florida (75% fewer) , San Francisco, 74%), Columbia, South Carolina (73% less) and Palm Bay, Florida (73% less). Dallas (72% less), Orlando, Florida (71% less) and Tampa, Florida (69% less) also saw large declines.
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The largest increases in home exchange rates were in Springfield, Massachusetts (up 114%), Albuquerque (up 103%), Springfield, Illinois (up 95%), South Bend, Indiana (up 86% ) and Boston (79% more). %).
Profit margins fell from the first quarter of 2020 to the first quarter of 2021 in 66 of the 108 metropolitan areas. Markets with the biggest drops were Savannah, Georgia (ROI down 80%), Tuscaloosa, Alabama (76% less), Salisbury, Maryland (73% less), Evansville, Indiana (71% less) ) and Davenport, Iowa (68% down).
The highest gross profits in the first quarter of 2021 were concentrated in the west, northeast and south. The top 20 in those regions were led by New York ($ 166,375 gross), Pittsburgh, Pennsylvania ($ 152,041), Los Angeles ($ 145,000), San Francisco ($ 139,250) and San Diego ($ 136,000), California.
Nineteen of the 20 smallest gross profits were distributed in the southern and midwestern metropolitan areas, with the lowest in Gulfport, Mississippi ($ 11,594 profit), Evansville, Indiana ($ 14,100), South Bend, Indiana ($ 18,000), Houston ($ 24,486) and Austin. ($ 27,950).
Of the 32,526 U.S. homes that were overturned in the first quarter of 2021, 10 percent were sold to buyers using loans backed by the Federal Housing Administration (FHA), up from 11.6% in the previous quarter and 14, 7% in the first quarter of 2020.