Home-flipping profit margins sink to 17-year lows
Home flipping projects yielded the lowest return on investment in nearly two decades, according to a report from real estate data firm ATTOM.
In the three-month period between March and June, home flipping profit margins were reported as 25.1% — the lowest since the same period in 2008.
At the same time, gross profits — the difference between what flippers paid for a property and what they earned selling it — were also down. In all, flipped projects earned about $65,300 during the second quarter. That's lower than the first quarter of this year and in the same time period in 2024.
“The initial buy-in for properties that are ideal for flipping, often lower priced homes that may need some work, keeps going up," Rob Barber, CEO at ATTOM, said in a statement. “As prospective homeowners get priced out of the middle and high-end of the market, they’re more likely to be competing with flippers over the same homes."
Lennar reports home price decline
Lennar’s average home price declined in the third quarter from a year ago, and the nation’s second-largest U.S. homebuilder continued to rely on price cuts and incentives to boost demand.
For the three months ended Aug. 31, Lennar’s average sales price fell to $383,000 from $422,000 a year ago, the company said. Aside from the lower prices, mortgage-rate buy-downs help reduce monthly payments for buyers at a time when affordability is a major concern.
Net new home orders in the third quarter rose 12% from the same period a year ago, a sign the strategy may be working, officials said.
T-Mobile gives development grants to 25 towns across US
Telecommunication company T-Mobile has issued an additional 25 awards as part of its Hometown Grant program.
The program issues up to $50,000 to towns with fewer than 50,000 residents across the United States. Those funds are put toward "initiatives that strengthen communities and improve lives." Since its inception, the program has created nearly 1,300 jobs.
The latest batch of recipients includes towns in Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kentucky, Louisiana, Maine, Minnesota, Missouri, North Carolina, Nebraska, Oregon, Tennessee, Texas, Virginia, Vermont, Washington and Wisconsin.
Projects include a tech center in Childersburg, Alabama; a new playground in Fernandina Beach, Florida; a live-entertainment space refresh in Rolla, Missouri, and historic library preservation in Burlington, Vermont.