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Dallas-Fort Worth home flipping dipped 25% over just a few months

Flippers are selling homes for over $54,000 more than they bought them for.

Home flippers in North Texas were making deals at a record pace at the start of the year. In the second quarter, as financing became more expensive and buyer activity cooled down, they began to back off.

Dallas-Fort Worth investors flipped 2,401 single-family homes and condos in the second quarter, down 25% from the first quarter but still up about 42% year over year, according to new research from Attom Data Solutions.

The previous quarter saw record flipping activity in North Texas, with double the activity seen a year before, as investors sought to take advantage of the region’s quickly rising home prices.

Excluding renovation costs and other expenses, local flippers made a gross profit of $54,750 in the second quarter, a 17.4% return on their investment. They made about half that a year earlier.

Local flippers bought homes for a median $314,000 and sold them for about $369,000.

Nationally, the 115,198 homes flipped marked the second-highest total the firm recorded in 22 years. The median price of a flipped property, $328,000, was the highest ever.

“The big question is whether the fix-and-flip market will begin to lose steam as overall home sales have declined dramatically over the past few months and the cost of financing has virtually doubled over the past year,” said Rick Sharga, executive vice president of market intelligence for Attom, in the firm’s report.

Of the major Texas metros, Dallas-Fort Worth saw the most flips in the second quarter, followed by the Houston area (2,141), San Antonio (1,349) and Austin (713). The Austin area saw the highest return on investment at 19%, but homes there were the priciest of the four to buy at a median price of almost $467,000.

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