The growing popularity of home flipping could overheat the housing market, according to a recent RealtyTrac report.

The percentage of homes sold in Q1 that were flipped jumped 20% compared with the last quarter of 2015, RealtyTrac reported. The percentage of flips increased in two-thirds of the states when compared with a year ago.

"After faltering in late 2014, home flipping has been gaining steam for the last year and a half thanks to falling interest rates and a dearth of housing inventory for flippers to compete against," RealtyTrac SVP Daren Blomquist said. "While responsible home flipping is helpful for a housing market, excessive and irresponsible flipping activity can contribute to a home price pressure cooker that overheats a housing market, and we are starting to see evidence of that pressure cooker environment in a handful of markets."