Do you watch house flipping shows like Property Brothers, Love It or List It, Flipping Out, or Flipping Vegas? If so, you’re like the millions of viewers across America that love to witness the potential in a property come to life. You may be interested to know that house flipping made a comeback in 2016, increasing for the first time in three years as Trulia economists explain. You may also be interested to know the percent of housing flipping in various metropolitan areas.
Here is a quick summary, courtesy of Trulia:
Reasons abound as to why house flipping trends matter, but Trulia’s speculations are as follows:
- Nationally, home flipping has picked up for the first time in three years, increasing to 6.1% of all home sales in 2016 from 5.3% the year before.
- Las Vegas tops the list with the most flipping activity in 2016, increasing to 10.5% in 2016 from 9.6% in 2015.
- Detroit and Chicago saw the largest increase, jumping by 4.8 and 2.8 percentage points, respectively.
The point is that flipping properties creates competition and provides improvements to housing stock. The trend is currently making a comeback across the United States, with Las Vegas being the most common market for flipping, and Wichita, KS being the least common. In 2016, flipping activity increased for the first time in 3 years, with rapidly rising home prices being cited as playing a major role. Over the last year, rises in price have rocketed to their highest levels since 2006, and so flipping has followed suit.
- Flipping is a speculative undertaking where investors are betting on turning a profit
- Flipping usually entails removing a home from a particular price point and moving it toward a higher price point via improvements.