Your inside source for real estate, development and construction information serving the counties of Mecklenburg, Union & Iredell VOLUME 106 NUMBER 38 ■ MECKTIMES.COM
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TUESDAY, OCTOBER 11, 2022 ■ $2.00
M/I Homes announces new community of 172 townhomes in Monroe at Secrest Landing Page 2
Drones are benefitting earthmoving operations Page 3
The US Real Estate Industry is worryingly reliant on email as a form of document and data collection Page 4
ENNICO: ‘If you can’t convince them, confuse them’ Page 5
NOVAK: Moving: A big expense and all risk Page 6
Major indexes slip in afternoon trading on Wall Street Page 7
Home flipping dips across U.S. during second quarter of 2022 while profits grow ATTOM has released its second-quarter 2022 U.S. Home Flipping Report showing that 115,198 single-family houses and condominiums in the United States were flipped in the second quarter. Those transactions represented 8.2 percent of all home sales in the second quarter of 2022, or one in 12 transactions. The latest portion was down from 9.7 percent, or one in every 10 home sales, in the nation during the first quarter of 2022, but still up from 5.3 percent, or one in 19 sales, in the second quarter of last year. Despite the decline, the home-flipping rate during the second quarter of this year still stood at the third-highest level since 2000, below the
high point registered in the first quarter of 2022. “The second quarter was another strong showing for fixand-flip investors. The total number of properties flipped was the second-highest total we’ve recorded in the past 22 years, and the median sales price of a flipped property $328,000 - was the highest ever,” said Rick Sharga, executive vice president of market intelligence for ATTOM. “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.” Among all flips nationwide, the gross profit on typical
transactions (the difference between the median purchase price paid by investors and the median resale price) hit $73,700 in the second quarter of 2022. That was up 10 percent from $67,000 in the first quarter of 2022 and up 10.1 percent from $66,944 in the second quarter of 2021. Typical profit margins, meanwhile, rose during the second quarter of this year after six straight periods when they had fallen or virtually stayed the same. The typical gross-flipping profit of $73,700 in the second quarter of 2022 translated into a 29 percent return on investment compared to the original acquisition price. While that remained down from 33 percent a year earlier – and far below the peak of 53.1
percent this century, which hit in 2016 – the latest margin was up from 25.8 percent in the first quarter of 2022. Profit margins improved in the second quarter of 2022 as median resale prices trends on flipped homes improved compared to what was happening when investors were buying homes. Specifically, in the second quarter of 2022, the typical resale price on flipped homes reached another all-time high of $328,000. That was up slightly from $327,000 in the first quarter of 2022 and 21.5 percent from $270,000 a year earlier. The quarterly gain, while tiny, was better than the 2 percent decline in prices
PLEASE SEE HOME FLIPPING ON PAGE 4
“Drones are another tool contractors can put in their toolbox to make more efficient and better decisions.” Zach Pieper Quantum Land Design
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