A Mixed Bag of Home-Flipping Trends


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Blomquist: “Several flippers we’ve talked to in the bellwether market of Southern California have actually stopped flipping in favor of getting into other real estate investing strategies.”

IRVINE, CA—The percentage of flipped homes nationally fell to 4.5% of all single-family sales in Q2, but average flipping returns are up, according to a report from RealtyTrac. In addition, the number of days to flip a home reached an eight-year high in Q2, but the share of flips acquired in foreclosure reached a 7.5-year low, the firm reports.

The report show that the percentage of home sales that were flips was down from 5.5% in the previous quarter and down from 4.9% a year ago. Going back to the first quarter of 2000, the peak in flipping was in the first quarter of 2006, when 8% of all single-family-home sales were flips.

Meanwhile, the average gross profit—the difference between the purchase price and the flipped price (not including rehab costs and other expenses incurred, which flipping experts estimate typically run between 20% and 33% of the property’s after-repair value)—for completed flips in the second quarter was $70,696, up from $67,753 in the previous quarter and up from $49,842 a year ago…

A Mixed Bag of Home-Flipping Trends

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