Where are the Best Markets for Flipping?
While flipping activity overall is down considerably from its peak reached 11 years ago, the median gross profit per flipped property is up considerably and some markets in the country are providing ample opportunities for flippers, according to data released by CoreLogic.
According to CoreLogic’s May 2016 MarketPulse, Principal Economist Bin He examined the levels of flipping nationwide and confirmed that the ratio of flipped homes among all residential homes was 4.4 percent for Q1 2016, down from its peak value of 6.4 percent in Q1 2005. But due to much lower overall home sales figures in 2016 than in 2005, the actual number of flips in Q1 2016 was more than 70 percent lower than its peak reached in Q2 2005.
The median gross profit per flipped property in Q1 2016 is about 17 percent higher than its peak value reached in Q3 2005 ($56,000 compared to $48,000), although the median percentage gross profit is declined from its peak of 47.7 percent in 2009 down to 41.1 percent in Q1 2016. According to He, the decline in median percentage gross profit is likely due to a significant and steady decline in the overall share of distressed inventory; CoreLogic reported that as of February 2016, the distressed sales share was slightly higher than 11 percent, which is approximately one-third of its peak reached in 2009.
Category : Blog