Industry News

Real estate flipping declines in California

Report cites fewer opportunities for fast money

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The "flipping" of homes in California declined to its lowest level in more than three years, according to HomeSmartReports.com, a company that offers information on real estate sales trends and property values. Investors are apparently pulling back, and "chances for a quick turnaround and profit are diminishing," according to a company statement. During the second quarter, 2.4 percent of the existing homes that sold statewide had been owned for six months or less. That was down from 3.2 percent for the first three months of this year and down from 3.5 percent for last year's second quarter, according to HomeSmartReports.com. Last quarter's activity was the lowest since first-quarter 2003, which also had 2.4 percent. The recent peak in flipping was during first-quarter 2005 at 3.8 percent, the company reported. "Flipping activity is one of a number of risk factors we look at to see how healthy and stable a local market is, all the way down to the neighborhood level," said Mike Ela, Hom...