Mortgages Blog

Finance Blogs » Mortgages Blog » Housing flips zip at a quick clip

Housing flips zip at a quick clip

By Judy Martel ·
Thursday, January 30, 2014
Posted: 2 pm ET

Buying a home and reselling it within six months to make a profit, commonly known as flipping, is back -- another indication of a recovering housing market.

2011-real-estate-buying-selling-lgA report by RealtyTrac shows that 156,862 single-family homes were flipped in 2013, a 16 percent increase over 2012 and a whopping 114 percent increase over 2011. The average gross profit, or difference between the flipped price and the price paid for the home, was $58,081 in 2013, up from an average of $45,759 a year earlier.

It wasn't easy

"Strong home price appreciation in many markets boosted profits for flippers in 2013 despite a shrinking inventory of lower-priced foreclosure homes to purchase," Daren Blomquist, vice president of RealtyTrac, said in a release.

Fewer foreclosure flips

Blomquist noted that 21 percent of all properties flipped in 2013 were foreclosures, but that's down from the 27 percent in 2012 and 32 percent in 2011. Even so, flipped homes were purchased for an average of 13 percent below market value in both 2012 and 2013.

More ritzy flips

Investors are finding buyers willing to pay more for flipped homes. Flips on houses priced above $400,000 increased by 36 percent in 2013 compared with 2012, while flips with a sales price at or below $400,000 increased by 17 percent over 2012.

Time on market stalled

Average time on the market for a flipped home nationwide was 84 days in 2013, down from 86 days a year earlier and 100 days in 2011.

Where the flips are

Regionally, areas with the biggest increases in flipping in 2013 included Virginia Beach, Va., with a 141 percent increase over 2012; Jacksonville, Fla.; Baltimore; Atlanta; Washington, D.C., and Detroit. Those with the biggest decreases included Philadelphia, Phoenix, Tampa, Fla., Houston and Denver.

Keep up with your wealth and mortgages and follow me on Twitter @JudyMartel.

Get real-time rate quotes with Bankrate's Mortgage app.

Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
1 Comment
Romita Thomas
February 03, 2014 at 12:03 am

Hey Romita I'm trying to learn more about flipping houses. I do have a company that do my work, but getting investor here Macon,Ga is hard. Can help me get more investor or how?