House Flipping is Back
Daily Real Estate News | Tuesday, October 16, 2012
Buying up homes, rehabbing them, and reselling them for a profit was big during the housing boom. But when the housing market started to slump, these house flippers in search of quick profits nearly vanished.
As the housing market recovers, house flipping may be showing signs of re-emerging, according to The Washington Post.
In the first half of 2012, house flips increased 25 percent compared to a year earlier, according to RealtyTrac. The average profit on each property is $29,342, according to the real estate research firm.
“There are flippers in any market, but a market where home prices are appreciating is much more forgiving for flippers than a market where prices are depreciating,” Daren Blomquist, vice president of RealtyTrac, told The Washington Post. “We have turned that corner in a lot of places in the last six months, so that’s going to attract flippers.”
Areas that were the hardest hit in the housing crash are seeing some of the largest increases in flipping as investors buy up foreclosures and short sales at large discounts. Phoenix has had the highest number of reported flips, followed by Las Vegas, Los Angeles, Miami, and Atlanta.
Source: “Flipping Houses Is Once Again a Booming Business,” The Washington Post (Oct. 14, 2012)