“Rising mortgage charges change the calculations for consumers and sellers alike,” stated Joel Varner, senior economist at Realtor.com. “Renovated houses nonetheless entice consumers, however financing these renovations at present rates of interest is much less enticing to at this time’s price-conscious customers.
“That is why we’re seeing the efficiency hole between flipped houses and different older houses shrink in comparison with 2021.”
Nationally, flipped houses are similar to different older houses when it comes to variety of bedrooms, variety of bogs, and general worth.
The median itemizing worth for flip houses is about $380,000, in comparison with the typical worth for different older properties, which is about $385,000. However upon nearer inspection, the similarities fade.
Flipped houses are typically smaller, have the next worth per sq. foot, and are sometimes positioned in city areas. Roughly 40.4% of flipped houses are in city zip codes, in comparison with 32.1% of different older houses.
Renovated houses nonetheless provide higher visibility and velocity. As of October 2025, flipped houses acquired roughly 6.5% extra pageviews per itemizing and spent roughly 10 fewer days in the marketplace than comparable older houses.
In 2021, when mortgage charges had been a lot decrease, the hole was even wider, with flipped houses attracting 25% extra pageviews per property.
Low cost price will increase when retailer closes
On-line curiosity stays robust, however pricing energy is waning.
Amongst flipped houses listed in July 2025 and subsequently offered, the median gross sales worth was 8.3% off the best listing worth after renovation.
Comparable older houses offered at a median low cost of two.9%.
This marks a pointy change from 2021, when flipped houses had been offered at a 0.9% low cost (just like the 0.4% low cost seen on different older houses).
Repair-and-flip exercise stays concentrated under the midpoint of the home market. A typical flipped dwelling was bought for 51.4% of the metro median worth and was listed for 87.8% after renovation.
Measuring the “flip issue”
The report introduces a brand new metric referred to as “Flip Issue” that tracks how a lot a house will rise in the marketplace as a result of renovations. Nationally, this coefficient is 36.4 share factors.
Solely eight metros had houses priced above the native median highlighted.
Pittsburgh leads this group, with Detroit combining a big provide of flipped houses with robust post-renovation income.
Outdoors of Pittsburgh and Cape Coral, Florida, most markets above the median had been in costly western metros, with solely Seattle above the nationwide common.
“We’re in a market the place renovation alone not ensures pricing energy,” Berner stated. “Flip houses nonetheless entice consideration and have a tendency to maneuver sooner than different older houses, however sellers are more and more having to readjust their expectations as rising mortgage charges restrict consumers’ affordability.”
