RealtyTrac: Less home flipping activity across country
Posted on Friday, November 21, 2014 at 8:02:38 AM
Over the past few years, lower home prices, affordable residential financing and a high number of foreclosed houses have all contributed to an increase in home flipping activity across the country.
Now, according to a report from RealtyTrac, that isn't the case. In fact, home flipping is on the decline, with slightly less than 27,000 single-family homes flipped during the third quarter of 2014, the lowest level since the second quarter of 2009. Last quarter, flipped homes made up only 4 percent of all single-family home sales.
"Flipping returned to its historic norm of 4 percent in the third quarter as home price appreciation cooled in many of the hot flipping markets across the country," explained Daren Blomquist, vice president at RealtyTrac.
In addition, Zillow reported that housing inventory is still shaky in parts of the country. While the number of expensive homes for sale is on the rise - properties valued $357,900 or above - homes priced much lower are harder to come by.
Zillow chief economist Stan Humphries pointed out that homebuying conditions are improving overall, but the experiences of buyers in different price tiers will be varied across the country.