The Moral of the Story
It seems like not so long ago, every one was getting into the groove of flipping houses. Some people did it for a living, a few others as a way to supplement their full-time jobs, while others did it just to keep busy while earning a little extra money for retirement. Now, with the market and profits slowing, flipping doesn’t seem to be that “hip” any more.
HomeSmartReports.com reported that nearly one in five flippers who sold homes from April to June actually lost money on the deal. That represents some of the highest levels in 2½ years and it could get worse. According to the NAR, investors bought about one out of every four homes sold last year. If investor continue to cut their losses and run in the coming months, their impact on markets, particularly California, Florida, Arizona and Nevada will definitely be significant.
The report by HomeSmartReports.com also highlighted a few interesting areas where flipping has been prevalent: