Today RealtyTrac released its Year-End and Q4 2015 U.S. Home Flipping Report, which found that numbers are on the rise after four consecutive years of declining numbers of home flippers.
- Home flipping increased in 75 percent of U.S. markets in 2015 and nationwide
- Smaller investors flipping fewer properties are jumping on the bandwagon
- Nationwide flipping gross profits are at a 10-year high
“As confidence in the housing recovery spreads, more real estate investors and would-be real estate investors are hopping on the home flipping bandwagon,” said Daren Blomquist, senior vice president at RealtyTrac, in a statement.
“Not only is the share of home flips on the rise again, but we also see the flipping trend trickling down to smaller investors who are completing fewer flips per year. The total number of investors who completed at least one flip in 2015 was at the highest level since 2007, and the number of flips per investor was at the lowest level since 2008.”
States with the biggest year-over-year increase of flips:
- Connecticut (up 23 percent)
- Oregon (up 21 percent)
- Maryland (up 19 percent)
- Illinois (up 18 percent)
- New Jersey (up 17 percent)
According to the report, in the San Francisco-Oakland-Hayward MSA, the 2015 flipping gross profit was reported at $145,000 with an ROI of 33.3 percent.
- Median purchase price in 2015: $435,000
- Percentage of total sales: 4.8 percent
- Annual percentage change: negative 16 percent