Business expansion Showcase Restoration prepares for opening of new building Page 23
January 7, 2021 - January 20, 2022 Vol. 1, No. 16
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WEB EXCLUSIVE Parker Pawn & Jewelry
Longtime Fayetteville company expands services bizfayetteville.com
Military Business ETI and innovation Page 11
Hospitality
An Affair To Remember hosts Women Of Power fashion show Page 17
IMMO RENOVATION/UNSPLASH
Index
Year in Review ........................................ 3 Editor’s Notes ........................................ 4 Achievers ............................................... 8 Military Business .................................11 In The News ............................ 12, 15, 16 Hospitality ...........................................17 The List ................................................19 Commercial Real Estate .......................23
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The dynamic of a variety of industries has changed over the last two years, and the residential real estate industry is no different. House flippers are experiencing that change too.
NEW YEAR NEW HOUSE HOME FLIPPING MEETS A NEED IN MARKET, INDUSTRY EXPERTS SAY
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By Scott Nunn
I
s the housing market too hot for flippers? The flipping concept is straightforward – people buy distressed properties, fix them up and try to resell them for a profit – usually a very healthy one. Flippers often buy foreclosed properties, short sales from banks or at tax-default auctions. Despite the high visibility on reality TV, billboards and social-media advertising, flipping makes up only a small part of the U.S. housing market. According to the property-data tracker ATTOM, 5.7 percent of U.S. home sales in the third quarter of 2021 were flips – about 1-in-18 of
transactions. Although the share of sales that are flips has been tracking higher, another key data point has not – profit margins. According to ATTOM, both gross and net profits in the flip sector are at their lowest levels since 2011. (Figures for the Greater Fayetteville area were not immediately available). So what’s driving the change? It’s basic supply-and-demand dynamics, according to Simon Stevenson, a professor at Old Dominion University and an expert on real estate investment. “A lot of the research on flipping
See NEW YEAR, page 7