Home flipping sees drop in popularity across country
Posted on Tuesday, August 26, 2014 at 9:08:36 AM
After the Great Recession, home flipping was an extremely popular practice. This is when entrepreneurial investors buy a home for cheap - often a foreclosed house or short sale - and fix it up to sell within six months. This is a great way to make a profit, and it can also be a good purchase for regular buyers looking to get the most out of their residential financing and budget.
However, the number of flipped homes is on the way down, according to RealtyTrac. In its Q2 2014 U.S. Home Flipping Report, the housing data company noted that roughly 31,000 homes were flipped during the second quarter of this year, only 4.6 percent of total sales. During the first three months of 2014, they made up 5.9 percent of total sales, and 6.2 percent a year ago at this time.
"Home flipping is settling back into a more historically normal pattern after a flurry of flipping during the recent run-up in home prices in 2012 and 2013," said Daren Blomquist, vice president at RealtyTrac.
For buyers interested in a flipped home, there are a few things to keep in mind. According to Bankrate, the home's history is important. So is the seller's - ideally, this won't be their first flip. The renovations are also vital, as the flipper shouldn't have cut any corners when repairing the property.