The typical flipped home earned a 25% return on investment (before expenses) in Q1 2025, down from 28% in the previous quarter and continuing a steady decline from the 48.8% peak seen in late 2020.
Gross profits, the difference between the median purchase price and median resale price, fell to $65,000, down from $70,000 in Q4 2024. The median purchase price for flipped homes was $260,000, with resale prices averaging $325,000.
“The competitive home market means high prices, which is good for short-term investors on the selling end,” said Rob Barber, CEO at ATTOM. “But that dynamic is also making it harder to find under-priced homes to buy up and it’s ultimately squeezing profit margins for the industry.
“It’s tricky to balance at times when the market looks like it could take a downturn. Investors don’t want to buy a property when prices are high and then see them drop before they’re ready to sell.”
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