Local real estate investors are flipping more houses this year and making bigger profits on sales, according to the latest data from California-based ATTOM Data Solutions, parent company of RealtyTrac.
In the second quarter, home flips — defined as an arm’s length sale of a property for the second time in a 12-month period — accounted for 9.7 percent of all home sales in York-Hanover, up from 8.5 percent last year.
And gross profits averaged $71,975, up from $66,400 in the second quarter of 2015.
In Lancaster County, flipping accounted for 6.8 percent of home sales in the second quarter, up from 6.4 percent last year. Profits averaged $64,450, up from $62,725 last year.
And in Harrisburg-Carlisle, home flips made up 4.5 percent of the market in the second quarter, rising from 3.2 percent last year. Average profits in the Harrisburg area were $60,700, up from $57,875 last year.
Despite the gains, the average time to flip a property in Central Pennsylvania has gone up, according to ATTOM. It took 181 days to flip a property in York-Hanover in the second quarter, up from 152 days a year ago.
The average flip in the Harrisburg area took 203 days, up from 173 days, while Lancaster County flips averaged 174 days compared with 170 last year.
By comparison, home flips in the U.S. were up 3 percent in the second quarter compared with the same quarter a year ago, according to ATTOM. There were more than 51,000 flips completed in the second quarter, the highest number in six years.
“Home flipping is becoming more accessible for smaller operators thanks to an increasingly competitive lending environment with more loan options for real estate investors, who are also benefiting from the historically low mortgage interest rates,” said Daren Blomquist, senior vice president at ATTOM. “That favorable lending environment for flippers has helped to fuel the recent flipping frenzy we’ve seen over the past five quarters.”
Most of the lending is not done through traditional banks, but through alternative lenders backed by private equity and hedge funds.
York-Hanover historic flipping data
Harrisburg-Carlisle historic flipping data
Lancaster historic flipping data