High-end Flipping on the Rise

Overall, flips in the market decreased in the second quarter of 2014 to a two-year low. The good news? Flips of higher-end properties appear to be gaining speed.

According to Realtytrac’s latest report, homes with an after-flip sales price of more than $750K made up 4.10 percent of the total flipped homes last quarter, up 21 percent from a year ago. Flipped homes that were sold in the $400K-$750K range also showed a bump of 10 percent over last year’s numbers, representing 12.66 percent of all flips.

Not surprisingly, high-end homes in the $750K-$1M range gave the best returns, with an average of more than 40 percent return on investment. Homes in the $50K-$100K came in second on average ROI at 37 percent, showing why distressed homes have been a staple market for investors over the last several years.

The report, released in August 2014, showed nearly 31,000 homes flipped in the second quarter across the nation, averaging 4.6 percent of all home sales, down from first quarter 2014’s 5.9 percent. Year-over-year comparisons revealed the drop to 4.6 percent in 2014 from 6.2 percent in second quarter 2013 to be a significant downward trend.

Realtytrac measures flips by calculating the number of homes that were purchased and sold within a 12-month period. If you are looking to purchase a property to flip, our loans now go up to $200K to better serve growing market needs. Click here to find out more.