The number of homes worth between $2 million and $5 million that were flipped — sold within six months of being purchased — more than tripled in the third quarter from the third quarter 2012, dwarfing the increases in other home-value segments, according to data from RealtyTrac.
Homes worth between $750,000 and $1 million and $1 million and $2 million also saw year-over-year jumps in house-flipping activity, but all other segments, with the exception of a slight increase in homes worth between $400,000 and $500,000, saw flipping activity drop in that timespan.
“Increasing home prices over the past 18 months combined with decreasing foreclosures have created a market less favorable to the high quantity of middle- to low-end bread-and-butter flips that we saw late last year and early this year,” said RealtyTrac Vice President Daren Blomquist in a statement.
Overall, the 32,993 single-family homes flipped in the third quarter marked a 35 percent drop from the second quarter and a 13 percent dip from the year before. However, gross profits were up 12 percent from a year ago in the third quarter to $54,927, reflecting the higher percentage of high-value homes in the house-flipping market.