House Flipping Is Coming Back!

Flipping earned a bad reputation during the housing boom thanks to 
speculators who bought and sold millions of homes in search of easy profits.
But  the practice is gaining popularity again.  As the nation’s real estate  market shows signs of life. The number of flips rose 25 percent during the first  half of 2012 from the same
period a year earlier, according to research firm  RealtyTrac, and the gross
profit on each property averaged $29,342.

RealtyTrac Vice President Daren Blomquist said the resurgence in flipping offers another indication that, in many parts of the country, housing prices have finally stopped falling.

“There are flippers in any market, but a market where home prices are appreciating is much more forgiving for flippers than a market where prices are depreciating,” Blomquist said. “We have turned that corner in a lot of places in  the last six months, so that’s going to attract flippers.”

Areas of the country that have been hit hardest by the housing crash have the most opportunities for flipping.  The SF Bay Area is a wonderful place for these opportunities.  Even though, we did not get hit as hard as other parts of California, there are many opportunities for house flipping here. 

Have you seen any new construction in the SF Bay Area?  Well, loan applications have tripled in the past few months so that means there are many buyers out there.  Simple supply and demand.