1 in 4 flippers sold their homes for LESS $$$ than expected in our 4Q22 survey. Elevated rates and falling home prices are scaring buyers wary of buying on the way down, but investors are clearly looking to acquire now and refinance later. 🧵Flipper comments to follow -> #Austin flipper: “Austin has an overinflated housing market that is compounded by elevated interest rates. This has resulted in a downward spiral in qualified buyers. The fix and flip market is pretty much gone. Prices in most areas are down about -30% or more in recent months.”

Big takeaways from our survey of fix-and-flippers last week: 1) Rates have massively slowed transactions and prices are falling broadly. 2) Lots of talk about flippers changing strategies, holding-and-renting instead of flipping, or exiting the space entirely.

COMMENTARY 🧵-> #Atlanta flipper: “Many highly-leveraged flippers will need to go out of pocket to sell or will default on no-recourse loans. We will not see improvement until the 2nd half of 2024. Many will not make it to that point and there will be some bargains for cash-flush investors.”

Results from our survey of #FixAndFlip investors are in. The fix-and-flip market is clearly cracking: higher rates have shrunk the # of buyers + the # feasible deals. Buyers are also cautious about overpaying given falling prices (cutting into flipper margins).

COMMENTARY🧵-> #Atlanta flipper: “Much higher risk environment due to rising rates. Sellers still have not reset expectations from earlier this year, so acquisitions have essentially come to a halt.” (2/19)

We @JBREC just surveyed 400+ flippers about #fixandflip conditions in partnership with Flatiron Realty Capital and @SundaeHQ.
Key takeaway: There is a TON of competition for deals right now.
MARKET COMMENTARY THREAD 🧵 -> #LasVegas flipper: “Market is oversaturated with inexperienced investors due to an increase of “gurus.” Supply is low, demand is high, and prices are inflated 20%+ over ARV. Not sustainable.”