Home flipping, in which a buyer resells a property quickly for a profit, is on the decline as U.S. residential price gains slow and foreclosures dwindle.
Almost 31,000 single-family houses were flipped in the second quarter, representing 4.6 percent of U.S. home sales, RealtyTrac said in a report Friday. That's down from 6.2 percent a year earlier and the smallest share since the first three months of 2012, when prices bottomed after the crash, according to the Irvine, Calif.-based data company, which defines a flip as a property sold within 12 months of purchase.
Real estate investors are making smaller profits and finding fewer opportunities for deals after a two-year surge in property values that's now slowing. The median existing-home price climbed 4.9 percent in July from a year earlier, compared with a 13.1 percent jump in the same month of 2013, the National Association of Realtors said Thursday. Distressed homes accounted for the lowest share of sales since at least 2008.