LA Market: Why If You Can Afford to Flip a House Now is the Time
By one measure the housing market is finally back to normal: The practice of flipping was down to 4.0% of all U.S. home sales during 2014’s third quarter. Flipping is down in enough cities that the national picture is clear: most of the housing inventory produced by foreclosures is now gone.
A tighter market for housing flips would seem to suggest smaller margins for flippers, but flipping profits are as high as they’ve ever been with third-quarter investors seeing 36% average gross returns. “The record-high average profits per flip demonstrate that flippers are still filling an important niche in an aging housing market with historically low levels of new homes being built,” said RealtyTrac. “The most successful flippers are buying older, outdated homes in established neighborhoods and rehabbing them extensively to appeal to modern tastes.” That means that the buyers still flipping properties in places like Miami, Los Angeles, and New York are making a killing at it.”