The pace of home flipping in Michigan’s largest markets is quickening.
Home flipping is where someone buys a home, quickly renovates it and tries to sell it for a profit.
Todd Teta is the chief product officer at ATTOM Data Solutions, a company that tracks the real estate market.
He says Michigan’s relatively low home prices have been attractive to flippers.
Teta says, in the first three months of 2019, there’s been an increase in flips in Detroit, Grand Rapids and Flint.
“Michigan, relative to the rest of the U.S., is a good opportunity,” says Teta.
According to Attom Data Solutions, 7.2% of homes sold in the U.S. in the first quarter of 2019 were flipped homes. As a part of overall home sales, that is the highest percentage for flipped homes in nearly a decade. But Teta says profit margins for flippers are shrinking.
“With interest rates dropping and home price increases starting to ease, investors may be getting out while the getting is good, before the market softens further,” says Teta.