home flipping construction carpenter electrician construction

The share of flips among second-quarter home sales was up significantly in Connecticut, according to a new report, but flippers’ return on investment was down slightly over 2021.

An analysis of metro area-level data by real estate analytics firm Attom Data shows 627 single-families and condominiums were flipped in Connecticut between April and June of this year, or 4.9 percent of all sales during the period. That’s nearly 45 percent above the same quarter last year, but far below the record of 883 set in the third quarter of 2004.

Attom designated any residential property that sold in two successive arm’s-length transactions within 12 months as a flip.

Flippers bought the properties at a median price of $243,625 and sold them for a median price of $335,000, for a gross profit of $91,375, excluding rehab and other costs. While that represents a return on investment of 37.5 percent, it’s down from the 39.5 percent ROI flippers were earning one year prior.

The time it took flippers to do their work also increased over the second quarter of2021: from 184 days to 190 days.

Greater Hartford saw the most flips in the second quarter, at 219 followed by 156 in Fairfield County and 147 in the New Haven region. Flipping activity in all three metros was up between 40.9 percent (New Haven) and 50.4 percent (Fairfield County) over the second quarter of 2021.

While Hartford and New Haven saw small decreases in flippers’ gross ROI over the same time period, Fairfield County flippers saw a huge jump, from 29.2 percent to 41.4 percent. The median Fairfield County flip sold for $570,650, compared to the $312,000 in Greater Hartford and $306,000 in the New Haven area.

Nationally, flips represented 8.2 percent of all home sales in the second quarter of 2022, up from 5.3 percent at the same time last year but the third-highest level since 2000, excluding the first quarter of this year when 9.7 percent of sales were flips. Typical profit margin was 29 percent, down from 33 percent a year earlier and below the prior peak of 53.1 percent set in 2016.

“The second quarter was another strong showing for fix-and-flip investors. The total number of properties flipped was the second-highest total we’ve recorded in the past 22 years, and the median sales price of a flipped property – $328,000 – was the highest ever,” Rick Sharga, executive vice president of market intelligence for Attom, said in a statement released along with the data. “The big question is whether the fix-and-flip market will begin to lose steam as overall home sales have declined dramatically over the past few months, and the cost of financing has virtually doubled over the past year.”