Phoenix is second in the country in negative returns for home flippers in the first quarter of this year. The average Phoenix flipper lost nearly $10,000 on each flip. Only Austin Texas did worse. Phoenix has also had one of the lowest raw profit margins – overall profit including renovation costs, labor and all other associated expenses. The poor returns are why the internet home buyers, despite still advertising heavily (my guess due to advertising time bought last year), are not buying. Its nothing new, Death of the IBuyer detailed last years losses. Despite the losses Phoenix had one of the largest flipping rates of any metro area with a population over 1 million at 13.9% of all homes sold in the first quarter of 2023. Why the volume? I assume that despite the losses flippers and ibuyers are liquidating existing inventory as they have no other choice.