AI Summary

Kingsport-Bristol’s home-flipping market cooled in early 2026, with Q1 flips falling from the previous quarter, but the deals that closed still produced strong gross profits. Flips accounted for 8.9% of local home sales, slightly above the national 8% rate, while the typical local gross profit rose to $103,000, well above the U.S. figure of $66,000. The trend points to a more selective market: consumers may see more renovated homes but often at premium prices; flippers can still make money if they buy carefully and control rehab costs; and investors should view the region’s older housing stock as an opportunity, but not an easy-profit market. – Reviewed by CoreData

By DON FENLEY

Kingsport-Bristol’s home-flipping market got smaller in the first quarter, but the deals that did close still produced solid gross profits.

The metro area recorded 79 home flips in the first quarter of 2026, down from 117 in the fourth quarter of 2025. Even with the decline, Kingsport-Bristol’s flip share remained above the national benchmark. ATTOM Data Solutions reported flips were 8% of total U.S. sales in the first quarter. Locally, the rate was 0.9 percentage points higher.

The Johnson City metro area was not included in ATTOM’s current  analysis because it did not meet the company’s benchmark for the number of flips.

The profit side of the local report was stronger than the volume side. The typical Kingsport-Bristol flip produced a gross profit of $103,000 in the first quarter, up from $101,000 in the previous quarter.

Nationally, ATTOM reported that typical gross flipping profit rose from $64,300 in the fourth quarter to $66,000 in the first quarter. Kingsport-Bristol’s typical gross profit was $37,000 higher than the U.S. figure, or about 56% above the national benchmark.

“The first increase in flipping returns in nearly two years is a welcome sign for investors. The market remains far more competitive than it was during the peak profit years, but this quarter’s gains suggest that conditions may be stabilizing. Success still depends heavily on local market dynamics, with some metros producing strong returns while others remain hard places to flip profitably,” said Rob Barber, CEO of ATTOM.

In Kingsport-Bristol, the local dynamic is an older housing stock and a still-meaningful resale spread. The median flipped home was built in 1989 and had 1,269 square feet. The median purchase price was $135,000. The median flipped price was $238,000. That left a gross spread of $81.17 per square foot before renovation, financing, carrying costs, commissions, and other expenses.

That distinction matters. ATTOM defines gross flipping profit as the difference between the purchase price and the flipped price. It does not include rehab costs and other expenses, which flipping veterans estimate typically run between 20% and 33% of a property’s after-repair value.

The Northeast Tennessee remodeling benchmarks show why investors have to be careful. A whole-house remodel typically ranges from $100 to $250 per square foot, depending on the scope. Structural changes and high-end finishes are at the top end of that range. A full gut-and-remodel often runs from $100,000 to more than $200,000.

At the median size of 1,269 square feet, even a $100-per-square-foot whole-house remodel would be roughly $126,900. That is larger than the reported $103,000 gross spread. Not every flip is a full gut job, but the math shows why the purchase price and scope of work are the deal.

Cash remained a key part of the local market. ATTOM’s local data showed 55.7% of Kingsport-Bristol flips were bought with cash. On the resale side, 26.6% were sold to cash buyers and 19% were sold to FHA buyers.

The market is no longer acting like the peak-flip period. Kingsport-Bristol’s peak quarter was the third quarter of 2022, when the metro recorded 134 flips. First-quarter volume was well below that mark, but the typical gross profit was still strong.

For consumers, that means renovated homes may continue to be part of the inventory, but not necessarily at bargain prices. For flippers, the message is discipline: buy right, control the rehab, and do not mistake gross profit for net profit. For investors, the local report points to selective opportunities rather than broad-market momentum.

Categories: REAL ESTATE