Although the housing market activity has shown periodic signs of life, we’re still awaiting a more vigorous and sustained rebound. Yet a glimpse of recent trends brings fresh hope. Real estate information firm RealtyTrac reported the resurgence of a once-popular trend: house flipping. Buyers that seek to purchase a home, fix it and sell it for a quick profit, are once again making money. Last year, the average gross profit from flipping a property was $72,400, the highest figure since 2011. The news has largely escaped media attention, but it is an important vital sign for the industry. You see,… Read More
Although the housing market activity has shown periodic signs of life, we’re still awaiting a more vigorous and sustained rebound. Yet a glimpse of recent trends brings fresh hope. Real estate information firm RealtyTrac reported the resurgence of a once-popular trend: house flipping. Buyers that seek to purchase a home, fix it and sell it for a quick profit, are once again making money. Last year, the average gross profit from flipping a property was $72,400, the highest figure since 2011. The news has largely escaped media attention, but it is an important vital sign for the industry. You see, flipping helps boost the supply of available homes, which in turn draws more buyers. In 2015, the average gross margin on house flipping has increased above 40%, with many major cities posting gross profitability on flips of 50% and higher. Pending home sales in April were up an impressive 14% from a year ago, which bodes well for the rest of the year. Pending sales are a leading indicator and the return of flipping can mean multiple sales in a year for the same property. While the recovery will help boost players in the sector, one company is set to… Read More