"Flippers face weaker selling conditions amid economic uncertainty, rising inventory and persistently high mortgage rates, the report stated. As a result, the report found that just 26% of flippers reported good sales in Q3 2025 compared to the seasonal norm, which is down from 34% one year ago. Fix-and-flip prices declined 3.7% year over year in the third quarter, while the share of homes that sold below their expected after-repair value climbed to 21%, the highest percentage since late 2022."
"Flippers are cutting prices more quickly than other sellers to avoid steep holding costs. At the same time, renovation expenses reached a record high of $80,000, up from $76,000 in the previous quarter. These costs now account for about 16% of the average sales price. High-cost renovations are concentrated in pricier coastal markets, where those costs can be passed on to buyers, the report explained."
"The maximum share of a property's after-repair value that flippers are willing to pay fell to 64% nationally the lowest figure since mid-2023 and a signal of lower confidence in near-term home-price appreciation. That figure was down from 66% in Q2 2025 and 69% in Q3 2024."
Selling conditions for house flippers weakened in Q3 2025 amid economic uncertainty, rising inventory and persistently high mortgage rates. Only 26% of flippers reported good sales, down from 34% a year earlier, while fix-and-flip prices declined 3.7% year over year. The share of homes selling below expected after-repair value rose to 21%. Renovation expenses reached a record $80,000, about 16% of the average sales price and concentrated in pricier coastal markets. The maximum share of after-repair value flippers will pay fell to 64%. Financing tightened: only 48% secured new loans at an average 9.8% interest rate. Regional conditions varied widely.
Read at www.housingwire.com
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