FLIPPING HOUSES IS BACK IN STYLE While the share of flipped homes is shrinking, the average sales price of single-family home flipped in the first quarter of 2014 was $55,574 higher than the average original purchase price That gross profit provided flippers with an unadjusted ROI of 30% of the average original purchase price. The average gross profit per flip a year ago was an unadjusted ROI of 28%. The average time to complete a flip rose to 101 days, up from an average of 92 days in the previous quarter and up from an average of 79 days for flips completed in the first quarter of 2013. The major cities that had the highest share of flips in the first quarter were New York (10.2%), Jacksonville, Fla., (10.0%), San Diego (7.1%), Las Vegas (6.7%) and Miami (5.9%). The cities that provided the highest average gross ROI percentage were Pittsburgh (89%), Philadelphia (56%), Memphis (51%), Detroit (48%), and Seattle (48%). Conversely, the cities that had the largest decreases in flips from a year ago were New Orleans (down 83%), Baltimore (down 81%), Minneapolis (down 80%), Richmond, Va. (down 80%), Detroit (down 76%), and Washington, D.C. (down 73%). Other major metros with year-over-year decreases in flipping as a share of all sales included New York (down 37%), Phoenix (down 39%), Riverside-San Bernardino (down 22%), Atlanta (down 57%), Chicago (down 29%) and Las Vegas (down 9%).
The cities that recorded the most total flips in the first quarter were New York (1,791), Phoenix (894), Los Angeles (828), Miami (749), and Riverside-San Bernardino (627).
RESOURCES: GlobalPointRelocation.com Los Angeles Luxury Real Estate Broker
Published on May 24, 2014
While the share of flipped homes is shrinking, the average sales price of single-family home flipped in the first quarter of 2014 was $55,57...