“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.
Regional results varied widely. The pricing environment weakened most in the Northwest, Florida and Texas, where more than half of respondents reported lower home prices than a year ago. By contrast, Midwest and Northeast flippers saw steadier conditions amid tighter supply.
Flippers in Texas and Florida also reported the least competition for new deals, with about one-quarter saying it has become easier to find properties as inventory rises. Nationally, 19% of respondents said they face less competition than usual for deals — the highest share since late 2022.
Financing has become more expensive and harder to obtain. Only 48% of flippers secured new loans in the third quarter, down from 54% in the previous period, and those who did reportedly paid an average interest rate of 9.8%.
Investors accounted for a growing share of flipped-home buyers, representing 28% of purchases compared with 16% a year earlier. Many are taking advantage of discounted prices in oversupplied markets, the report explained.
Some flippers, however, expressed optimism for the coming months as 31% percent expect stronger sales in the next six months. But that share remains below last year’s level.
