Arizona remains a top state for house flipping but the numbers are dropping off.

New numbers from real estate data company RealtyTrac show nearly 1,800 homes were bought, refurbished, and re-sold in the second quarter of this year. That’s a 25 percent drop from the same time last year.

RealtyTrac’s Darren Blomquist said Arizona was a prime market for house flipping in the early days of the housing bust.

“But now it’s become less favorable because many of those foreclosures and distressed properties have gone away, and that leaves fewer properties that investors can buy at a discount," he said.

And fewer discounted homes cuts into the profit margin of house flippers.

“That’s a concern, that those profits are going down. Which is why, I think, you see the flipping activity going down too. There’s just not as much room for profit in that market," he said.

The average return on investment for home flippers in Arizona has dropped from 30 percent a year ago to 17 percent last quarter.