This isn’t the year 2000, but with all the house flipping happening lately, you might find yourself a little confused as to what year it is.
CoreLogic released a new report that found consumers are back to the flipping business, but with a different tactic than they did during the housing boom.
Instead, short-term investors are adding more value to the property before reselling. CoreLogic explains, “We’ve seen growing signs that flippers are getting increasingly good at buying properties at a discount while the premium they’re selling for has remained mostly constant.”
The flipping rate in the U.S. was 10.9% of all home sales in the fourth quarter of 2018. The areas with the highest median returns on a flip rate were:
- Detroit: 95.9%
- Philadelphia: 92.8%
- Pittsburg 75%
- Cleveland: 70%
- Akron, Ohio: 65.7%
CoreLogic will be focusing on what specific improvements were made on these properties, the costs of the work, and the net economic profits earned by flippers.