Monday, June 06, 2016

2016: the year of the flip?

Sales of flipped single-family homes and condominiums shot up 20 percent from the quarter prior in the first quarter of this year, reaching the highest rate since the beginning of 2014 and grossing, on average, a profit of $58,250, according to a recently released RealtyTrac® report.

Markets that saw the highest share of flip activity in the first quarter, per the report, include:

• Memphis, Tenn.
• Clarksville, Tenn.
• Deltona-Daytona Beach-Ormond Beach, Fla.
• Fresno, Calif.
• Visalia-Porterville, Calif.
• Tampa, Fla.
• Las Vegas, Nev.
• Virginia Beach, Va.
• Miami, Fla.
• Jacksonville, Fla.

Markets that saw the highest average gross profit in the first quarter, per the report, include:
 
• East Stroudsburg, Pa.
• Reading, Pa.
• Pittsburgh, Pa.
• Flint, Mich.
• New Haven, Conn.
• Philadelphia, Pa.
• New Orleans, La.
• Cincinnati, Ohio
• Buffalo, N.Y.
• Cleveland, Ohio
• Jacksonville, Fla.
• Baltimore, Md.

A flip is defined in the report as “a property that is sold in an arms-length sale for the second time within a 12-month period based on publicly recorded sales deed data collected by RealtyTrac in more than 950 counties accounting for more than 80 percent of U.S. population.” The average gross profit, as defined in the report, is “the difference between the purchase price and the flipped price (not including rehab costs and other expenses incurred, which flipping veterans estimate typically run between 20 percent and 33 percent of the property’s after repair value).”

Source: RealtyTrac®

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com