Home Flips Spike In 2013
As the housing market recovers, home flippers are coming in strong in 2014. RealtyTrac released its Q4 2013 Home Flipping Report, which showed single-family home flips up 16% from 2014 and 114% from 2011.
A home flip is when a home is purchased and then sold again within six months. There were 156,862 home flips last year, which accounted for 4.6 percent of all single-family home sales in 2013. In 2011, home flips made up just 2.6 percent of home sales.
“Strong home price appreciation in many markets boosted profits for flippers in 2013 despite a shrinking inventory of lower-priced foreclosure homes to purchase,” said RealtyTrac VP Daren Blomquist.
Last year, the average gross profit for a home flip was $58,081. According to Blomquist, 21% of all properties flipped last year were purchased out of foreclosure, down from 27 percent in 2012.
Which markets are the most active? Virginia Beach saw a staggering jump in flipping activity at 141 percent compared to 2012! Other active markets included Jacksonville, Florida; Baltimore, Maryland; and Atlanta, Georgia.