Which housing markets are dominated by flipped homes? [Video]
Posted on Monday, April 6, 2015 at 9:34:10 AM
Following the housing bubble, home flipping became a common sight across the country. Novice and professional investors alike would buy a home for cheap, make some needed repairs and then resell within six months - all for a profit.
It became so popular that a number of television shows were made documenting the practice. Today, home flipping is less common due to a stronger economy, but this doesn't mean that it is done for good.
In fact, several markets have a particularly high flipped homes for sale percentage, where flips make up a significant portion of total listed homes. According to RealtyTrac, the top market in this regard is Inkster, Michigan, where 27 percent of homes for sale in 2014 were flips. Following Inkster is Opa Locka, Florida; Compton, California; and Saint Marys, Georgia, at 21.4 percent, 20.7 percent and 19.9 percent, respectively.
Much of home flipping is driven by price. Cheaper homes make for better flips. According to Redfin, February 2015 saw more stable home price growth, continuing a key housing market trend. On a yearly basis, homes cost 11.5 percent more.
While this could hamper home flipping on a national level, there are still markets across the country that are ripe for investors.