As home prices continue to rise, house-flipping is becoming less popular in the Tampa Bay area.
The percentage of homes flipped in the second quarter of this year plunged 18 percent from the same period in 2017, according to the real estate web site ATTOM Data Solutions. Among metro areas, Tampa Bay ranked 12th, with flips accounting for 7.2 percent of all sales.
A flip is defined as a home sold at least twice in 12 months in an arm’s length transaction.
At 8.3 percent, Pasco County had the highest percentage of flips in Florida and ranked 50th among U.S. counties. Hillsborough placed 89th with 7.2 percent and Pinellas 141st with 6.5 percent. Figures for Hernando were not available.
Nationally, the 5.2 percent flip rate was down just slightly from the same period a year ago. However, the gross return on investment — the profit exclusive of renovations and carrying costs — sank to 44.3 percent, the lowest in four years.
"Fewer distressed sales are limiting the ability of home flippers to find deep discounts even while rising interest rates are shrinking the pool of potential buyers for flipped homes," said Daren Blomquist, ATTOM’s senior vice president.