“Flippers face weaker promoting circumstances amid financial uncertainty, rising stock and persistently excessive mortgage rates,” the report said.
In consequence, the report discovered that simply 26% of flippers reported good gross sales in Q3 2025 in comparison with the seasonal norm, which is down from 34% one 12 months in the past.
Fix-and-flip costs declined 3.7% 12 months over 12 months within the third quarter, whereas the share of properties that bought beneath their anticipated after-repair worth climbed to 21%, the very best proportion since late 2022. Flippers are slicing costs extra rapidly than different sellers to keep away from steep holding prices.
On the identical time, renovation bills reached a document excessive of $80,000, up from $76,000 within the earlier quarter. These prices now account for about 16% of the common gross sales value.
“Excessive-cost renovations are concentrated in pricier coastal markets, the place these prices will be handed on to consumers,” the report defined.
The utmost share of a property’s after-repair worth that flippers are keen to pay fell to 64% nationally — the bottom determine since mid-2023 and a sign of decrease confidence in near-term home-price appreciation. That determine was down from 66% in Q2 2025 and 69% in Q3 2024.
Regional outcomes diverse extensively. The pricing atmosphere weakened most within the Northwest, Florida and Texas, the place greater than half of respondents reported decrease residence costs than a 12 months in the past. In contrast, Midwest and Northeast flippers noticed steadier circumstances amid tighter provide.
Flippers in Texas and Florida additionally reported the least competitors for brand new offers, with about one-quarter saying it has change into simpler to seek out properties as stock rises. Nationally, 19% of respondents mentioned they face much less competitors than standard for offers — the very best share since late 2022.
Financing has change into dearer and more durable to acquire. Solely 48% of flippers secured new loans within the third quarter, down from 54% within the earlier interval, and those that did reportedly paid a mean rate of interest of 9.8%.
Investors accounted for a rising share of flipped-home consumers, representing 28% of purchases in contrast with 16% a 12 months earlier. Many are profiting from discounted costs in oversupplied markets, the report defined.
Some flippers, nevertheless, expressed optimism for the approaching months as 31% p.c count on stronger gross sales within the subsequent six months. However that share stays beneath final 12 months’s degree.
