Only 6 percent of DFW market in 2018
“Flipping” Opendoor, other iBuyer companies and Investor Flips
Last year’s slowdown in Dallas-Fort home sales meant fewer home flips. DFW area flips dropped by more than 6 percent in 2018. And the number of houses bought and flipped fell to a seven-year low nationwide, according to a new report by Attom Data Solutions. Almost 208,000 U.S. homes were flipped in 2018 — down 5.6 percent from 2017’s total. Attom Data counts a flip as a single-family home or condo that traded twice within the same 12 months. In the DFW area, there were 4,551 home flips, which was 6.3 percent lower than in 2017.
Home flips accounted for about 6 percent of total North Texas home sales, according to Attom Data Solutions. Phoenix was the flipping capital of the country with more than 9,300 sales in 2018. DFW ranked 12th for total flips. On average, it took 180 days to flip a house in 2018, with slightly less time to turn the property around in the DFW area.
Economists and real estate experts agree that only 5 percent of any market will be handled by iBuyer and/or Opendoor type programs. Phoenix is considered saturated with over 9 percent of their entire real estate market last year classified as a “flip” transaction, of which Opendoor and its competition was 5 percent of the “flip” brokerage and the remaining 4 percent was investor flipping, etc. In the DFW market, Opendoor and other iBuyer programs accounted for less than half of the 6 percent total “flip” market. As more iBuyer and/or “flip” companies have entered the DFW market, they share that same pie of about 3 to 4 percent of the entire market.
- Dallas Morning News, February 28, 2019 and RE/MAX Brokerage Facebook Stats, March 1, 2019