Top 9 cities for flipping houses Profits are soaring in these markets

Investors gobbled up 156,862 single family homes and flipped them in 2013, up 16% from 2012 and up 114% from 2011, according to RealtyTrac.

Homes flipped in 2013 accounted for 4.6% of all U.S. single family home sales during the year, up from 4.2% in 2012 and up from 2.6% in 2011. In short, the market is hot for house flippers, but in some areas more than others.

Flips accounted for 3.8% of all sales in the fourth quarter, down slightly from 3.9% of all sales in the third quarter and down from 7.1% of all sales in the fourth quarter of 2012 — the highest percentage of sales represented by flips in a single quarter since RealtyTrac began tracking flipping data in the first quarter of 2011.

The average gross profit for a home flip was $58,081 for all U.S. homes flipped in 2013, up from an average gross profit of $45,759 in 2012. The average gross profit for homes flipped in the fourth quarter was $62,761, up from $52,746 in the fourth quarter of 2012.

“Investors have not lost interest in purchasing and flipping homes. In fact, now that we are seeing home price appreciation they are more interested than ever,” said Sheldon Detrick, CEO of Prudential Detrick/Alliance Realty.  “The challenge for many would-be flippers in our markets is a shortage of available inventory to flip, as evidenced by the decrease in the number of homes flipped (in 2013 compared to 2012).”

So what are the top nine cities for flipping? According to RealtyTrac’s city numbers as of the third quarter 2013, here they are below from number nine through one, ranked by profits.

9. Seattle-Tacoma-Bellevue, Wash.
Flipped price: $319,280
Average profit: $97,002
Number of flips: 485

8. Salinas, Calif.
Flipped price: $438,333
Average profit: $100,228
Number of flips: 69

7. Santa Rosa-Petaluma, Calif.
Flipped price: $411,909
Average profit: $113,001
Number of flips: 125

6. San Diego-Carlsbad-San Marcos, Calif.
Flipped price: $475,306
Average profit: $120,180
Number of flips: 900

5. Los Angeles-Long Beach-Santa Ana, Calif.
Flipped price: $513,975
Average profit: $127,634
Number of flips: 2,116

4. Ocean City, N.J.
Flipped price: $467,113
Average profit: $140,716
Number of flips: 53

3. Oxnard-Thousand Oaks-Ventura, Calif.
Flipped price: $510,906
Average profit: $143,578
Number of flips: 197

2. San Francisco-Oakland-Fremont, Calif.
Flipped price: $621,380
Average profit: $154,130
Number of flips: 584

1. San Jose-Sunnyvale-Santa Clara, Calif.
Average profit: $166,287
Flipped price: $704,762
Number of flips: 202

Source Housing Wire…

About Ady Simion (Realtor and Public Notary)

Ady Simion was named in the Top 1% of all agents for NRT LLC a subsidiary of Realogy that operates a variety of real estate offices under brands such as Coldwell Banker, Sotheby's International Realty, Century 21, The Corcoran Group, and the technology-based brokerages ZipRealty and Climb Real Estate. NRT has 787 offices and 47,000 sales associates. Selling and buying property can be very stressful but with the right agent it can be profitable and a fun experience. Ady is also a Notary Public and being a people person he wants to help negotiate for his clients making their transactions as smooth as possible. Ady’s goals are simple: He wants to be the best source of information on the Los Angeles area Real Estate market, as he assists clients through each transaction with care and professionalism. He is proud of his large referral base of clients who have placed their trust in him over the years. Why him, when there are so many good people out there?!?! • Sellers will have their property exposed to the largest team of sales professionals in the world by far. Coldwell Banker Agents sale more homes than anyone else. • Buyers will have the opportunity to view more properties exclusively. • And most importantly when you hire him you get a whole team working for you not just “only one person”. Ady Simion started his Professional Career as an Insurance Agent, and then mastered the Mortgage Industry focusing on helping buyers and sellers achieve their life dreams. He now is an Agent with the Largest Residential Real Estate Company in the nation and the world, Coldwell Banker, at the Pasadena office which is the leader in the areas in which he specializes. After finishing College Ady has consistently been a Top Producer in every office/business he worked at. He speaks English, Romanian and Spanish. Real Estate is constantly changing and working with an agent that has been involved in the Real Estate buying/selling process most of his life is always beneficial for clients. Call, text or e-mail him or just stop by to say Hi and ask any real estate questions you may have.

Posted on February 4, 2014, in Uncategorized. Bookmark the permalink. Leave a comment.

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