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Top 10 Counties with Highest Annual Percentage Increases in Home Flipping Returns

Plus, Northeast, West Have Top Apartment Markets for Occupancy and 6 more RE insights

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A Quote

The game of competitive life often requires maximizing the experience of the people who have the most aptitude and the most determination as learning machines. If you want the very highest reaches of human achievement, that's where you have to go

― Charlie Munger

Today’s Rates

Macro Trends

Home Sales, Prices Surge as Spring Buying Season Starts link

  • Existing-home sales saw a nearly 10% jump in February, marking the largest monthly increase in a year. The rise in sales comes as home prices continue to soar, indicating a strong start to the spring buying season.

  • The median existing-home price reached $384,500 in February, nearly a 6% increase from the previous year. With inventory conditions improving, this surge in home prices reflects a competitive but potentially easing market environment for buyers.

  • Cash sales reached a decade high, comprising 33% of transactions in February. This trend suggests that more buyers, including individual investors and second-home purchasers, are entering the market with substantial financial backing, impacting the overall dynamics of home buying.

Real Estate Trends

Top 10 Counties with Highest Annual Percentage Increases in Home Flipping Returns link

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  • Home flipping declined dramatically in 2023, with a 29.3% decrease from the previous year, marking the sharpest fall since 2008. The total number of flips was 308,922, a significant drop from 436,807 in 2022.

  • Investment returns on home flips have hit their lowest since 2007, with profit margins shrinking for the sixth time in seven years. The median flip profit decreased to $66,000, yielding a 27.5% return on investment, the lowest level in over a decade.

  • The counties with the highest annual increases in home flipping returns include Schuylkill County, PA, and Scott County, MN, with returns jumping to 144.4% and 20.5% in 2023, respectively. These standout counties reveal localized markets where flipping remains highly profitable despite national downturns.

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Northeast, West Have Top Apartment Markets for Occupancy link

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  • Minneapolis-St. Paul leads with a 97.5% occupancy rate. This metro has been a consistent performer, maintaining one of the tightest occupancy rates among the top 50 markets for the past five years.

  • Columbus, OH, and Sacramento share the No. 4 spot for occupancy rates. Columbus's occupancy rates have surged 60 basis points over the past year, marking its emergence as a top contender for apartment market occupancy.

  • San Jose stages a comeback, re-entering the top 10 for apartment occupancy rates. After a dip due to increased supply, San Jose's occupancy rates have rebounded, showcasing the resilience of its apartment market.

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Existing Home Sales Surge to One-Year High in February link

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  • Despite rising mortgage rates, February saw existing home sales climb to a 12-month peak, according to the National Association of Realtors. This surge comes amidst low resale inventory and strong demand, pushing median sales prices up for the eighth consecutive month year-over-year.

  • Total sales, encompassing single-family homes, townhomes, condominiums, and co-ops, increased by 9.5% to a seasonally adjusted annual rate of 4.38 million. Yet, the market remains tight, with a 2.9-month supply of unsold inventory, indicating a long-term need for more home construction.

  • The median sales price of all existing homes reached $384,500, marking a 5.7% increase from the previous year and setting a new record for February. Additionally, all-cash transactions constituted 33% of sales, reflecting how all-cash buyers are less impacted by interest rate fluctuations

Off Topic

Charted: Car Brand Loyalty in 2024

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That's all, folks.

Cheers,

Vidit

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