House flippers are in it for fast profits.
Instead, the profits themselves have been falling fast.
Here’s a Dec. 15 CNBC headline:
Home flipping profits drop at the fastest pace in over a decade
As the article notes, in Q3, gross flipping profit fell 18.4% from the previous quarter.
The Elliott Wave Financial Forecast has been way ahead of this developing story. Back in September, the monthly publication showed this chart and said:
There are so many house flipping TV shows that FortuneBuilders.com, a house flipping website, issued a list of the “Top 10 House Flipping Shows to Watch in 2022.” Meanwhile, the big flippers have gotten hammered. In November, the Elliott Wave Financial Forecast showed what happened to Zillow’s stock after the company entered the flipping game last year and then had to quickly exit because of losses. The stock is now down 84% from its peak in February 2021. This chart shows what happened to the firm to which Zillow handed much of its flipping business. Opendoor Technologies, which The Wall Street Journal calls the market leader in automated home flipping, is down 89% from its peak, which also occurred in February 2021.
The September Elliott Wave Financial Forecast used data through Sept. 1. Then, Opendoor Technologies’ stock price was trading at $4.28. As of this writing intraday on Dec. 23, the price is even lower – way lower — $1.02!