The Washington Post reports on how Maryland and DC are bucking the trend on home flipping, which has been on the decline nationwide but is still going strong in these two jurisdictions.
Home flipping has slowed across the country, but it’s booming in the District and Maryland. The District had the highest number of home flips in the nation in the first quarter, according to data collected by ATTOM Data Solutions, a real estate data provider. Maryland ranked fifth.
For its purposes, ATTOM defines a home flip as a property that has sold for the second time within a 12-month period. It uses publicly recorded sales deed data from more than 950 counties across the nation.
Most of the flipping in Maryland occurred in Prince George’s County.
“Maryland is a little bit ahead of the game in clearing out their backlog compared to the District,” Blomquist said. “It’s in the lower-priced areas of Maryland that we’re seeing a lot of flipping.”
Baltimore city and Baltimore County came in just below Prince George’s County for the highest rate of home flips, but Baltimore city was where flippers made the most money. Baltimore had an average gross flipping return on investment of 106 percent. (ATTOM looks only at the difference between what the property cost to purchase and its sale price. It doesn’t include the cost of renovation.) The average return on investment for Maryland was 79.3 percent. The District had a 58.3 percent profit margin. The national average was 47.4 percent.
Read The Washington Post to learn more.