Home Flipping Regaining Popularity in Fresno & Nationwide
The amount of homes being flipped has increased by 18% nationwide over the past year, with flipped homes now accounting for 5% of all single-family home and condo sales in the United States, according to housing data source RealtyTrac.
Increase in Profits From Home Flipping
The average profit nationwide from flipping a home, that is, the difference between the purchase price and the flipped price was $62,122 for completed home flips in 2015’s 3rd quarter- slightly up from an average gross flipping profit of $61,781 in the 3rd quarter of 2014. The gross profit does not include the rehab costs and other expenses incurred when flipping the homes, however. Flipping experts estimate that rehab costs typically run between 20% and 33% of the property’s value after repair.
Fresno Amongst Top in Nation for Home Flipping
The states with highest share of home flipping as a percentage of all single family home and condo sales were Nevada (8.4%), Florida (7.9%), Alabama (7.5%), Arizona (6.9%), and Tennessee (6.6%).
Among the top metro markets in the US with at least 75 single family and condo flips completed in the third quarter, those with highest share of flipping were Memphis (10.5%), Fresno (9.5%), Mobile, Alabama (9.2%), Tampa (9.1%) and Deltona-Daytona Beach-Ormond Beach, Florida (9.0%).
“After curtailing flipping activity last year due to slowing home price appreciation and shrinking inventory of flip-worthy homes, real estate investors have started to jump back on the flipping bandwagon in 2015,” said RealtyTrac vice president Daren Blomquist.