Market Watch: Ocean City, NJ
Understanding your market is critical to being a successful real estate investor. Your goal is to hold the property for a short time when flipping houses during market swings. However, it’s good to know whether the market is appreciating or depreciating. You especially don’t want to finish up and find out your comps have dropped 2-3% (or more). While you should never count on appreciation, it certainly can be beneficial to the bottom line.
Again we feel too many new investors focus on national news. We all know flipping is hot in Las Vegas and pretty much all the southern sand states. But there are some markets out there that are making huge recoveries. We try to watch what is happening around the country, and as we start our Market Watch Series, we will share details of markets that look ripe for flipping houses. You can compare these trends to your market and see how it stacks up. Next on the list, Ocean City, New Jersey.
You mean Atlantic City right? Nope. Ocean city in the 3rd quarter was 6th highest priced for flipped home prices. Real estate investors there are taking in a average gross profit of $140,716. Granted the average price is in the mid to higher price range, ($467,113) there is still plenty of money to be made. The number of flipped houses was only a little over 50 last quarter but that was a rise of 35% from the previous quarter. Gross profits have risen substantially in the past year, however, from $18,542 in the third quarter of 2012 to $140,716 in the third quarter of 2013. This is despite the fact that the average price paid on a home that was flipped was more than $427,000. Those are some crazy growth numbers.
Again there is still money to be made from this segment of the housing industry, despite increased competition and decreased inventory. This is primarily due to overall buying activity in the area’s housing market picking up as the city continues to recover from Superstorm Sandy.
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