Home flipping profits rise for first time in nearly 2 years

Thanks to the double whammy of high home prices and elevated interest rates, house flipping has suffered lately.But the tide might be turning, as a new report shows flipper profit margins are rising for the first time in nearly two years.The typical profit margin for a flipped home hit 25.4% in the first quarter of 2026, up from 24.7% in the previous quarter, which marked its lowest point since 2008, according to the quarterly report on home flipping from real estate data analytics firm ATTOM.“The first increase in flipping returns in nearly two years is a welcome sign for investors,” ATTOM CEO Rob Barber said in a statement.“The market remains far more competitive than it was during the peak profit years, but this quarter’s gains suggest that conditions may be stabilizing.

Success still depends heavily on local market dynamics, with some metros producing strong returns while others remain difficult places to flip profitably.”The last time there was an uptick quarter to quarter was in early 2024 when the typical return on investment nationally was around 35%.The increase seen last quarter—albeit less than a percentage point—ends seven consecutive quarters of decline.For home flippers, it may represent a welcome reversal of recent trends.As median home sales prices peaked last year, the average investor saw their gross profits—the difference between the median resale price and the median price originally paid—shrink to just $65,981, down from $77,000 the year before, according to ATTOM.So what’s behind the slight increase? Is it really all about softening home prices? ATTOM’s Barber says not necessarily.“While some easing in price pressures may have helped at the margins, the data suggests this uptick is more about stabilization than a broad market shift,” Barber tells Realtor.com.“Returns are still below last year’s levels, and with longer hold times and wide variation across markets, it points to investors adjusting to tough...