CA: Flipping Declines
According to a recent Inman Real Estate News article, flipping is on the decline in the California housing market. In fact, HomeSmartReports.com reports they are at their lowest levels in three years. HomeSmartReports.com found that during the second quarter, 2.4 percent of the existing homes that sold in California had been owned for six months or less. That was down from 3.2 percent for the first three months of this year.
After considering commissions and costs, 24.7 percent of the “flip” sales resulted in a loss for the seller, the highest percentage since 25.8 percent during first-quarter 2002. Of those who lost, the median loss was $30,100. Overall, flippers sold their properties for a median $44,500 more than they paid.