House Flipping is Up 18% Over Last Year
RealtyTrac® released its Q3 2015 U.S. House Flipping Report, showing that 43,197 single family homes and condos were flipped and resold for the second time within a 12-month period. While third quarter house flips were down from second quarter of 2015, they were up 18% over last year’s Q3, when house flips registered their lowest since 2000.
Daren Blomquist, VP of RealtyTrac, says, “After curtailing home 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. On the acquisition side, investors are finding creative ways to pinpoint potential flips in the off-market arena, and on the disposition side investors have a bigger pool of potential buyers thanks to a surge in FHA buyers this year, many of them first-time buyers looking for starter homes.”
RealtyTrac can only take into account the difference between the purchase price and the flipped price. They can’t include rehab costs and other expenses because they vary so greatly. Flipping experts estimate 20%-33% of the after repair value for rehab costs. The average gross profit after flip was $62,122, slightly down from second quarter but up from last year’s third quarter.
States with highest house flipping percentage were:
- Nevada — 8.4%
- Florida — 7.9%
- Alabama — 7.5%
- Arizona — 6.9%
- Tennessee — 6.6%