Kiavi executive says fix-and-flip market outperforming bearish Q2 survey
While economists have consistently called for falling mortgage rates over the last couple of years, the reality of the market has been much different. Geopolitical unrest and energy inflation have pushed rates up, keeping the headwinds strong for flippers.
“It feels like for the past three or four years, you’re heading into the following year saying, ‘Yeah, this is going to be the year where things are going to be calm geopolitically, inflation’s going to drop, rates are going to drop with it,’” he said. “It’s been the story or the hope for 3 or 4 years now, and then it just hasn’t happened.”
Finding the silver lining
Goodwin said the slow resale market creates an advantage on the buy side that partially offsets the pressure on the sell side.
In a more active market, a flipper might compete against ten other buyers for a property, but in the current market they may compete against fewer and purchase prices reflect that. A flipper who buys a property 2% below what they would have paid in a stronger market can compensate for 2% less appreciation on the exit, keeping the profit-and-loss equation roughly intact.
Regionally, Goodwin said the Midwest and Northeast have been consistent performers for two to three years. The more interesting regional story heading into the second half of 2026, he said, is Florida.
