House flipping is back in a big way in Ohio, driven by low home prices and strong demand for the finished product.
During the first quarter of the year, 1,961 homes were flipped in Ohio, 36% more than the previous quarter and 15% up from a year earlier, according to the
Flipped homes accounted for 8.2% of all Ohio home sales during the three-month period. In some Ohio ZIP codes, including 44128 in Cuyahoga County and 45426 in Montgomery County, flipped homes accounted for more than 1 out of 4 home sales.
Flipping is making a comeback nationally as well. Across the country, flipped homes accounted for 7.2% of sales during the quarter, the highest share since 2010, according to Attom.
"There's a lot more flipping happening than before," said Misty Linn, an agent with Core Ohio Realty Advisors who works with investors to buy, renovate and flip homes in Columbus. "It's supply and demand. Our housing inventory is so low, even now. When a home is put on the market, it sells fast."
Ohio flippers paid an average $70,600 for homes in the first quarter — less than flippers in any state except Michigan. They sold those homes for an average $128,400, or 82% above purchase price, the highest return in the nation outside Pennsylvania.
Flipping was particularly lucrative in Ohio's metro areas.
Cleveland-area flips sold for 100% more than — or exactly twice — their purchase price. Canton-area flips yielded 100.5%, Dayton 88.8%, Toledo 69.3%, Akron 72.7%, Cincinnati 75% and Columbus 69.8%, according to Attom.
Across the country, flippers get the best returns in working-class cities where home prices are low. The highest returns during the first three months of the year were in Pittsburgh (131.2%), Flint, Mich. (127.6%), Shreveport, La. (112.5%), and Scranton, Pa. (112%).
According to Attom, the typical home flipped in Ohio was 1,324 square feet, built in 1964 and sold 184 days after purchase.
"They're selling off properties significantly faster than they were a year ago, to help ensure a decent ROI (return on investment) in case the general housing boom slows down or stops," said Todd Teda, chief product officer with Attom.
"Looking ahead, it's a mixed picture, with some signs that investors could still find good opportunities in the Midwest. While profit margins generally were down most in lower-priced parts around the country, they still remained higher in those areas as a percentage of invested amounts. So that could keep the home-flipping money flowing to states like Ohio, which has some of the least expensive housing in the nation."
