9 Cities Where Home Flipping Is Heating Up
June 2, 2016 12:45 PM
Falling interest rates and a shortage of housing inventory are heating up the market for home flipping. The rate of home sales that were flips during the first quarter was up 20% across the country compared to a year ago, marking the highest rate of home flipping since the first quarter of 2014. "While responsible home flipping is helpful for a housing market, excessive and irresponsible flipping activity can contribute to a home price pressure cooker that overheats a housing market, and we are starting to see evidence of that pressure cooker environment in a handful of markets," said Daren Blomquist, senior vice president at RealtyTrac. Here's a look at the housing markets where the home flip share of all property sales set new record highs during the first quarter. The data, from RealtyTrac, is based on properties sold in an arm's-length sale for the second time within a 12-month period across 126 metropolitan statistical areas.
No. 9 Buffalo-Cheektowaga-Niagara Falls, N.Y.
Home Flipping Share of Sales: 5.9% Median Price of Flip Sales: $79,400 Average Gross ROI: 85.1%
No. 8 Lincoln, Neb.
Home Flipping Share of Sales: 6.1% Median Price of Flip Sales: $149,500 Average Gross ROI: 29.4%
No. 7 East Stroudsburg, Pa.
Home Flipping Share of Sales: 8.5% Median Price of Flip Sales: $95,507 Average Gross ROI: 212.1%
No. 6 New Orleans-Metairie, La.
Home Flipping Share of Sales: 8.6% Median Price of Flip Sales: $165,000 Average Gross ROI: 97.6%
No. 5 Lancaster, Pa.
Home Flipping Share of Sales: 8.7% Median Price of Flip Sales: $139,900 Average Gross ROI: 76%
No. 4 Baltimore-Columbia-Towson, Md.
Home Flipping Share of Sales: 8.9% Median Price of Flip Sales: $190,000 Average Gross ROI: 80.8%
No. 3 Roanoke, Va.
Home Flipping Share of Sales: 9.3% Median Price of Flip Sales: $114,300 Average Gross ROI: 58.8%
No. 2 Huntsville, Ala.
Home Flipping Share of Sales: 10.1% Median Price of Flip Sales: $100,545 Average Gross ROI: 50.1%
No. 1 York-Hanover, Pa.
Home Flipping Share of Sales: 10.4% Median Price of Flip Sales: $142,000 Average Gross ROI: 77.2%
