Your inside source for real estate, development and construction information serving the counties of Mecklenburg, Union & Iredell VOLUME 97 NUMBER 105 ■ MECKTIMES.COM
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Home Flipping Rate Rebounds During Q2 Ram Realty Advisors Completes Sale of The Collective Page 4
Realtors Continue to Help Consumers Navigate Challenges of Buying a Home Page 2
M/I Homes Begins Sales in Stallings Brook Page 3
Optimist Hall Welcomes Noble Smoke as New Tenant Page 4
Facing Reality Makes Decision-Making Easy Page 5
Should You Hire a Contract Manufacturer? Page 7
ATTOM, has released its second-quarter 2021 U.S. Home Flipping Report showing that 79,733 single-family homes and condominiums in the United States were flipped in the second quarter. Those transactions represented 4.9 percent of all home sales in the second quarter of 2021, or one in 20 transactions – the first increase in more than a year. The second quarter home flipping rate was up from 3.5 percent, or one in every 29 home sales in the nation, during the first quarter of 2021. But it was still down from 6.8 percent, or one in 15 sales, in the second quarter of last year and remained below levels seen throughout most of the past decade. The report further shows that as the flipping rate rose, profit margins dipped to a 10-year low. The gross profit on the typical home flip nationwide (the difference between the median sales price and the median paid by investors) rose in the second quarter of 2021 to $67,000. That figure was up 2.4 percent from $65,400 in the first quarter of 2021, and 3.1 percent from $65,000 in the second quarter of last year. But the more important measure of profit margins slid downward, with the typical gross-flipping profit of $67,000 in the second quarter of 2021 translating into just a 33.5 percent return on investment compared to the original acquisition price. The national gross-flipping ROI was down from 37.2 percent in the first quarter of 2021, and from 40.6 percent a year earlier, to its lowest point since the first quarter of 2011, when the housing market had yet to start recovering from a price slump brought on by the Great Recession in the late 2000s. The decrease of 7.1 percentage points in the typical profit margins from the second quarter of last year to the same period this year, marked the largest annual drop since mid-2014. Profit margins declined in the second quarter as pric-
PLEASE SEE FLIPPING ON PAGE 6
“You really have a lot of reasons for the tape to trade defensively right now. If you’re not going to get the bond market rallying and yields declining, then the likelihood is you see more volatility in stocks.” Julian Emanuel, chief equity and derivatives strategist at BTIG
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