We’re Bringing Flipping Back!

A second look at Flipping Houses in the News

Since we posted our blog about flipping houses in the news there has been even more buzz about rehabbing. Enough that we felt some of the more newsworthly stories deserved a second glance.  It seems every day there is a new list of the “Top 5 Hottest Markets For Flipping Houses”.   Here’s a few articles worth reading on various markets around the country.

CNBC ran this story on how the housing market was heading into the spring selling season stronger than the previous year.  Los Angeles saw some of the earliest signs of the housing recovery.  The story discusses bidding wars and the return of house flippers for the first time since the bubble burst.

Shady investors helped create this mess, but legitimate investors have been an essential part of the housing recovery.  The reason for this is that during the housing bubble, speculators artificially helped inflate prices.   Now, rehabbers are helping to stabilize neighborhoods and preserve, if not raise, surrounding home values.  They are also luring first-time buyers into the marketplace.  But the how long will this fortuitous situation last?  Price increases mean some flippers may not be able to purchase homes and make significant profits.  Don’t wait until this situation passes you by to get into the game.

Flipping houses is on the rise.

According to RealtyTrac’s Midyear 2013 Home Flipping Report , house flipping was on the rise in more than two-thirds of housing markets.  These included New York, Washington D.C., Chicago and several Florida areas–some of the hardest hit with the foreclosures epidemic.  Nationwide, over 136,184 homes have been flipped.

RealtyTrac’s top 5 states for house flipping are as follows:

1. Washington DC, 80%

2.  Nebraska, 62%

3.  Oklahoma, 35%

4.  Pennsylvania, 31%

4.  Florida, 24%

“We’re seeing house flipping exceed what we saw back during the height of the housing bubble.”

—Daren Blomquist, vice president at RealtyTrac

The housing bubble burst caused a ripple effect in other markets, including Nebraska, causing home prices and demand to drop off in recent years, Blomquist said.  That occurred also in Oklahoma and other Midwestern markets.  Now that consumers in those markets have their confidence back , home prices in those markets are rebounding at a faster rate than almost ever before as the market plays catch-up from the down years.

Post a comment below and let us know how your market is doing.

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Erik Hitzelberger has been Real Estate Investor since 2007. While learning the ropes in the market down-cycle, he now teaches others how to use his systems and leverage other people’s expertise to achieve their own goals.

Erik Hitzelberger – who has written 194 posts on Part Time REI.

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