Photo: Hershil Shah/Flickr
Last year was a busy one for home flipping in the US.
There were 179,778 single-family homes and condos flipped on American soil in 2015 accounting for 5.5 percent of all home sales, according to RealtyTrac’s Home Flipping Report.
Some 110,008 investors were behind these transactions, the highest number seen in the past eight years, and they made average profits of $55,000 per home flipped, not including renovation costs.
“As confidence in the housing recovery spreads, more real estate investors and would-be real estate investors are hopping on the home-flipping bandwagon,” says Daren Blomquist, RealtyTrac’s senior vice president, in a statement.
“Not only is the share of home flips on the rise again, but we also see the flipping trend trickling down to smaller investors who are completing fewer flips per year,” he continues.
With 1.63 homes flipped for each investor, the ratio of flippers to properties dropped to its lowest point since 2008.
RealtyTrac considers any home sold more than once in a 12-month period as being flipped, so long as these were arms-length transactions, meaning an unrelated buyer and seller were each acting in their own best interest.
Of any state, Nevada had the largest share of home flips, with this practice making up 8.8 percent of all home sales, followed by Florida at 8 percent and Alabama at 7.4 percent.
Looking at metro areas where a minimum of 250 homes were flipped, San Francisco proved most profitable for investors in 2015. There, the average flipping profits per home amounted to $145,000.
The Home Flipping Report data covers more than 80 percent of the American population, as the real estate firm pulled publicly recorded sales deed data from over 950 counties.
Although the number of investors flipping properties is on the rise, it’s still a far cry from what was seen during the pre-financial-crisis peak of 2005. That year, 259,192 investors flipped homes, and these sales represented 8.2 percent of all home sales.