Home flipping in 12 active metropolitan areas last year was above a peak set in 2005, just two years before the U.S. mortgage market started to collapse, according to a report by RealtyTrac. The rise in home flipping, which is buying and reselling a home to make a quick buck, has prompted concerns that local housing bubbles could be developing. Profits generated by home flipping also hit a 10-year high, with home flippers netting an average $55,000 per sale before renovation and transaction costs. Profits topped $100,000 in expensive markets such as New York and Los Angeles.
Wednesday, July 6, 2016
Home 'flipping' exceeds peak in some hot U.S. housing markets
Source: Reuters
Home flipping in 12 active metropolitan areas last year was above a peak set in 2005, just two years before the U.S. mortgage market started to collapse, according to a report by RealtyTrac. The rise in home flipping, which is buying and reselling a home to make a quick buck, has prompted concerns that local housing bubbles could be developing. Profits generated by home flipping also hit a 10-year high, with home flippers netting an average $55,000 per sale before renovation and transaction costs. Profits topped $100,000 in expensive markets such as New York and Los Angeles.
Home flipping in 12 active metropolitan areas last year was above a peak set in 2005, just two years before the U.S. mortgage market started to collapse, according to a report by RealtyTrac. The rise in home flipping, which is buying and reselling a home to make a quick buck, has prompted concerns that local housing bubbles could be developing. Profits generated by home flipping also hit a 10-year high, with home flippers netting an average $55,000 per sale before renovation and transaction costs. Profits topped $100,000 in expensive markets such as New York and Los Angeles.
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