AgentIndustry News

RealtyTrac: Flipping is in fashion again

Investors are back on the flipping bandwagon after taking a break during the housing market slump
  • Five percent of all single-family home and condominium sales in the third quarter were flipped, according to RealtyTrac.
  • That’s a slight decrease from the 5.4-percent share of flipped homes in the second quarter, but an 18-percent increase over the 4.3-percent share reported in the third quarter of last year.
  • Completed home flips in Q3 yielded an average of $62,122 in average gross profit, a slight decrease over Q2’s average gross profit of $62,521 and a slight increase from the average gross profit of $61,781 in Q3 2014.

After shying away from house flipping in the last year due to slow home price appreciation and tight inventory, real estate investors are back on the flipping bandwagon, according to RealtyTrac’s U.S. Home Flipping Report for the third quarter. Five percent of all single-family home and condominium sales in the third quarter were flipped, according to RealtyTrac. That’s a slight decrease from the 5.4-percent share of flipped homes in the second quarter, but an 18-percent increase over the 4.3-percent share reported in the third quarter of last year, when the share of flipped homes hit its lowest quarterly level since the first quarter of 2000. “On the acquisition side, investors are finding creative ways to pinpoint potential flips in the off-market arena, and on the disposition side, investors have a bigger pool of potential buyers thanks to a surge in FHA buyers this year, many of them first-time buyers looking for starter homes,” said RealtyTrac Vice President Dare...