* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Saturday, October 4, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Books about the arts and some haunts for a Denton October – Denton Record-Chronicle

    Uncover Artistic Treasures and Spooky Adventures to Experience in Denton This October

    Taylor Swift Releases New Album The Life of a Showgirl : Listen and Read the Full Credits – Yahoo

    Taylor Swift Releases New Album The Life of a Showgirl : Listen and Read the Full Credits – Yahoo

    Toni Braxton Is Turning Her Biggest Hits Into Lifetime Movies – Yahoo

    Toni Braxton Is Turning Her Biggest Hits Into Lifetime Movies – Yahoo

    Major airline to offer new in-flight entertainment options for passengers – PennLive.com

    Major airline to offer new in-flight entertainment options for passengers – PennLive.com

    Penn State-Themed Restaurant and Entertainment Spot Happy Valley Live Set to Open in State College – StateCollege.com

    Penn State-Themed Restaurant and Entertainment Spot Happy Valley Live Set to Open in State College – StateCollege.com

    The Police Made Chart History With This 1979 Hit Nearly 50 Years Ago – Yahoo

    How The Police Changed Music Forever with Their Iconic 1979 Hit Nearly 50 Years Ago

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Technology Is Becoming More Important Than Humans In CX – No Jitter

    Technology Is Becoming More Important Than Humans In CX – No Jitter

    A Tech Expo Shows What China Can Make, but Not Who’ll Buy It All – The New York Times

    Inside China’s Tech Expo: Cutting-Edge Innovations Face Uncertain Demand

    Steampunk Metal Oval Technology Sense Sunglasses Personality Handmade Chain Multicolor Sunglasses UV400 – The San Joaquin Valley Sun

    Steampunk Metal Oval Sunglasses with Handmade Multicolor Chain – Bold UV400 Protection and Unique Style

    STELLA Automotive AI Appoints Fred Seidelman as Chief Technology Officer – Yahoo Finance

    STELLA Automotive AI Appoints Fred Seidelman as New Chief Technology Officer

    Saving Energy and Money with Smart Technology – Terms of Service with Clare Duffy – Podcast on CNN Podcasts – CNN

    Saving Energy and Money with Smart Technology – Terms of Service with Clare Duffy – Podcast on CNN Podcasts – CNN

    Four Strategic Signals Technology Leaders Are Tuning In To – SPONSOR CONTENT FROM ARM – Harvard Business Review

    Four Essential Strategic Signals Every Technology Leader Should Watch

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Books about the arts and some haunts for a Denton October – Denton Record-Chronicle

    Uncover Artistic Treasures and Spooky Adventures to Experience in Denton This October

    Taylor Swift Releases New Album The Life of a Showgirl : Listen and Read the Full Credits – Yahoo

    Taylor Swift Releases New Album The Life of a Showgirl : Listen and Read the Full Credits – Yahoo

    Toni Braxton Is Turning Her Biggest Hits Into Lifetime Movies – Yahoo

    Toni Braxton Is Turning Her Biggest Hits Into Lifetime Movies – Yahoo

    Major airline to offer new in-flight entertainment options for passengers – PennLive.com

    Major airline to offer new in-flight entertainment options for passengers – PennLive.com

    Penn State-Themed Restaurant and Entertainment Spot Happy Valley Live Set to Open in State College – StateCollege.com

    Penn State-Themed Restaurant and Entertainment Spot Happy Valley Live Set to Open in State College – StateCollege.com

    The Police Made Chart History With This 1979 Hit Nearly 50 Years Ago – Yahoo

    How The Police Changed Music Forever with Their Iconic 1979 Hit Nearly 50 Years Ago

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Technology Is Becoming More Important Than Humans In CX – No Jitter

    Technology Is Becoming More Important Than Humans In CX – No Jitter

    A Tech Expo Shows What China Can Make, but Not Who’ll Buy It All – The New York Times

    Inside China’s Tech Expo: Cutting-Edge Innovations Face Uncertain Demand

    Steampunk Metal Oval Technology Sense Sunglasses Personality Handmade Chain Multicolor Sunglasses UV400 – The San Joaquin Valley Sun

    Steampunk Metal Oval Sunglasses with Handmade Multicolor Chain – Bold UV400 Protection and Unique Style

    STELLA Automotive AI Appoints Fred Seidelman as Chief Technology Officer – Yahoo Finance

    STELLA Automotive AI Appoints Fred Seidelman as New Chief Technology Officer

    Saving Energy and Money with Smart Technology – Terms of Service with Clare Duffy – Podcast on CNN Podcasts – CNN

    Saving Energy and Money with Smart Technology – Terms of Service with Clare Duffy – Podcast on CNN Podcasts – CNN

    Four Strategic Signals Technology Leaders Are Tuning In To – SPONSOR CONTENT FROM ARM – Harvard Business Review

    Four Essential Strategic Signals Every Technology Leader Should Watch

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home General

US home flipping malaise pinches reality TV stars to contractors

March 23, 2024
in General
US home flipping malaise pinches reality TV stars to contractors
Share on FacebookShare on Twitter

Investing.com - Financial Markets Worldwide

Please try another search

Published Mar 23, 2024 07:14AM ET
Updated Mar 23, 2024 10:56AM ET

4/4

US home flipping malaise pinches reality TV stars to contractors
© Reuters. HGTV’s Flipping 101, host Tarek El Moussa walks through a home, almost burned to the ground as it neared completion, with newcomer investors, in Los Angeles, California, U.S., January 9, 2020. HGTV/Handout via REUTERS

2/4

By Amina Niasse

NEW YORK (Reuters) – While the increase in interest rates engineered by the Federal Reserve over the last two years put a damper on the overall U.S. housing market, it took a sledge hammer to home flippers from small contractors to reality TV stars.

Just ask Tarek El Moussa, star of HGTV’s “The Flipping El Moussas” and former co-host of the real estate and renovation focused channel’s mainstay, “Flip or Flop.”

“How do I account for [interest rates]? I got my ass kicked last year. I lost a lot of money. And that’s just the reality of the business,” said El Moussa.

Indeed, house flipping – or investing in, and often renovating, a single-family home with the intent to sell for a profit – has fallen from heights seen during the COVID-19 pandemic. The number of Americans acting as investors in the housing market dived 38.85% between 2021 and 2023’s fourth quarter, according to property data provider ATTOM Data Solutions. Through the fourth quarter of 2023, the share of homes purchased by investors fell 11% on a year-over-year basis, a report from real estate and mortgage firm Redfin (NASDAQ:) said.

Even so, housing investors spent $32.3 billion on homes in the U.S. in 2023, compared with $33.6 billion a year earlier, and flippers bought 26% of the lowest-priced homes during 2023’s fourth quarter, Redfin said.

FRENETIC MARKET

HGTV’s El Moussa bought 91 homes in 2021 – garnering him a $600,000 average monthly mortgage payment. Then mortgage rates surged, home sales in southern California plunged, and he found himself with inventory he could not offload.

Home flipping does best in a frenetic “buyer’s market,” with prices rising amid increased transactions, said Chen Zhao, Redfin’s senior economist. After the Fed began hiking rates in March 2022 to lower inflation, buyers and sellers held off, creating gridlock in the housing market.

Rates eventually reached a two-decade high near 8% in October, and the resulting market has presented investors with the same issue home-buyers face – limited inventory and lukewarm demand.

Rates have eased somewhat: Freddie Mac said on Thursday the average 30-year fixed-rate mortgage was 6.87%. Still, the current scene is a striking departure from the onset of the pandemic when sub-4% mortgage rates and heightened demand could promise a juicy profit.

LOWER MARGINS, LABOR TROUBLES

For Elisa Covington, an investor based in the San Francisco Bay Area, a return on investment during 2021 often swung between 60% and 70%, she said, occasionally hitting 100%.

“In 2021 and early 2022, my projects were getting much higher returns,” Covington said. “But this year the profit margin for most of my projects have been in line with my expectations” of 30% to 40%.

Lack of homebuyer demand would make it easier on investors looking for single family homes, but reduced inventory has largely outweighed that, cutting into acquisition trends.

Julio Martinez, co-owner and broker at JATS Properties in Los Angeles, said “2023 was kind of weird.” He acquired just six homes last year and even that was due to several of the properties being in foreclosure. If not for that, “we probably would’ve only done one or two.”

Some construction companies say cooling home investment has cut into new business activity. Ghulam Mustafa, owner of New-York based Sahara Builders, said the decline in his firm’s full-gut renovation projects since the pandemic has caused a 40% decline in profit since 2021 through the end of 2023.

Last year “was much slower than the pandemic,” Mustafa said.

For contractors who don’t build new homes, steady project supply in the absence of gut-renovations is replaced by smaller-ticket refurbishing projects for existing home-owners, RedFin’s Zhao said.

For house flippers, meanwhile, lower profits have reduced the labor they can hire for renovations, which can decelerate sales.

JATS Properties’ Martinez had to let go of a full-time handyman, he said. In addition to property flipping, his family-owned company operates as brokers and property managers, so that labor loss meant less attention to home-flip projects.

“We had to slow [workers] down on our projects, and lend them out to our clients,” said Martinez. “Typically we take first priority because they’re our employees. But when we don’t have the funds to cover our own projects, we have them work on our clients’ homes. It’s taking the burden of expense of those employees off our backs.”

FADING STARS

Amid the slow turnover, flippers are diversifying their activities.

Martinez, who saw transaction volume in 2023 fall by half from 2021, began making property-secured loans to aspiring investors. And El Moussa, who needed to gird for losses he knew were coming from unsold flipper projects, shifted to buying home purchase contracts wholesale and selling to investors, deals that typically net smaller margins but are less risky than traditional flipping.

“In order to get prepared for those losses that were coming, I stopped buying houses to flip and I only focused on wholesaling,” he said.

The story has changed for the house flipper reality TV landscape as well.

HGTV ad revenue slid from a four-year high of $42.7 million in 2021 to $32.6 million in 2023, according to data from iSpot.TV, a television ad measurement company, though it continues to hold dominant share in its market segment.

Shows like The El Moussas have increasingly incorporated discussions on rates, slow turnover, and price acceleration in Southern California to keep viewers engaged, said Loren Ruch, head of home content at HGTV. Show development focus has turned to standalone secondary homes, for example a guest house, and multi-generational living.

“People might not be spending huge amounts of money on design or renovation projects, so we’re also looking into a variety of shows that are more approachable price points that are maybe based on not doing as much demolition, but actually focusing on the space and the configuration,” said Ruch.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Investing.com – https://www.investing.com/news/economy/us-home-flipping-malaise-pinches-reality-tv-stars-to-contractors-3350552

Previous Post

Congo-Kinshasa: Freed DRC Journalist Says He Was Imprisoned As Warning to Others

Next Post

Biden signs $1.2 trillion funding package, averting government shutdown

Dodgers’ Roki Sasaki opens up about pitching in relief – Yahoo Sports

Dodgers’ Roki Sasaki opens up about pitching in relief – Yahoo Sports

October 4, 2025
Ageing and health – World Health Organization (WHO)

Ageing and health – World Health Organization (WHO)

October 3, 2025
CFOs confident in their own companies but not in the economy – CFO.com

CFOs Reveal Unshakable Confidence in Their Companies Amid Economic Uncertainty

October 3, 2025
Books about the arts and some haunts for a Denton October – Denton Record-Chronicle

Uncover Artistic Treasures and Spooky Adventures to Experience in Denton This October

October 3, 2025
WFSD Announces Northwell Mental Health Partnership – William Floyd School District

WFSD Announces Northwell Mental Health Partnership – William Floyd School District

October 3, 2025
The current state of shutdown politics – CNN

Inside the High-Stakes Battle Over Government Shutdowns

October 3, 2025
Bhagwat rings ‘warning bell’ on Himalayas, ecology threats – Times of India

Bhagwat rings ‘warning bell’ on Himalayas, ecology threats – Times of India

October 3, 2025
117-Year-Old Woman’s Diet Could Help Us All Live Longer – ScienceAlert

117-Year-Old Woman’s Diet Could Help Us All Live Longer – ScienceAlert

October 3, 2025
The Best Time to Eat Breakfast, Backed by Science—and Why It Matters More Than You Think – Real Simple

The Ideal Time to Eat Breakfast: Surprising Science-Backed Reasons Why It Matters

October 3, 2025
Lifestyle and stress erode heart health advantage in long-term US immigrants – News-Medical

Lifestyle and stress erode heart health advantage in long-term US immigrants – News-Medical

October 3, 2025

Categories

Archives

October 2025
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
2728293031  
« Sep    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (849)
  • Economy (870)
  • Entertainment (21,744)
  • General (17,392)
  • Health (9,913)
  • Lifestyle (882)
  • News (22,149)
  • People (871)
  • Politics (881)
  • Science (16,080)
  • Sports (21,371)
  • Technology (15,852)
  • World (853)

Recent News

Dodgers’ Roki Sasaki opens up about pitching in relief – Yahoo Sports

Dodgers’ Roki Sasaki opens up about pitching in relief – Yahoo Sports

October 4, 2025
Ageing and health – World Health Organization (WHO)

Ageing and health – World Health Organization (WHO)

October 3, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version