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| Daren Blomquist |
IRVINE, CA — RealtyTrac® (www.realtytrac.com), the nation’s
leading source for comprehensive housing data, released its Q1 2015 U.S. Home
Flipping Report, which shows that 17,309 single family homes were flipped —
sold as part of an arms-length sale for the second time within a 12-month
period — in the first quarter, 4.0 percent of all single family home sales
during the quarter.
The average gross profit — the difference between the
purchase price and the flipped price — for completed flips in the first quarter
was $72,450, up from $65,290 in the previous quarter and up from $61,684 in the
first quarter of 2014 to the highest level going back to the first quarter of
2011, the earliest where data is available.
The average gross return on investment (ROI) — average gross
profit as a percentage of the average original purchase price — was 35.1
percent for completed flips in the first quarter, down slightly from 35.3
percent in the fourth quarter but up slightly from 35.0 percent in the first
quarter of 2014.
“The strong returns for home flippers in the first quarter demonstrates
that there is still a need in this recovering real estate market for move-in
ready homes rehabbed to more modern tastes, particularly given the dearth of
new homes being built,” said Daren
Blomquist, vice president at RealtyTrac.
“The challenge for
flippers in 2015 will be finding inventory to flip. Flippers ideally want to
buy distressed homes that provide them with an opportunity to add value in
markets where there is good affordability and ample demand from buyers for the
finished flip product — whether those buyers are millennials becoming
first-time homebuyers, baby boomers purchasing their present or future
retirement home, or buy-and-hold real estate investors looking for turnkey
rental properties that cash flow.”
For a complete copy
of the company’s news release, please contact:
Ginny Walker
949.502.8300, ext. 268
