House Flipping Profits Increase

Profits from flipping homes are increasing. The profit for flipping a home has jumped 30% making the average sales price in this year’s first quarter $55,574 higher than the purchase price from last year, according to RealyTrac. Daren Blomquist, vice president at RealtyTrac said, “slowing home price appreciation early this year in many of the most popular flipping markets put some investors in danger of flying too close to the sun. But investors appear to have recalibrated their flipping strategy, accounting for the slower home price appreciation even if that means fewer flips. This is another good sign that this housing recovery is behaving much more rationally than the last housing boom, which was built largely on unfounded speculation rather than fact-based calculations.” Additionally, the average time to flip a house has increased 9 days from the previous quarter, averaging 101 days to complete the process. More here

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