As home prices rise and profit margins get smaller, home flipping is not as prevalent as it was in years past. Still, the DC area ranks as one of the places where flipping is still relatively prevalent.
6.6 percent of homes sold in the region in the third quarter of 2015 were flips, according to a study out today by Trulia, which puts the DC area in the top ten U.S. cities for home flipping.
Nationally, the percentage of flipped home sales has held steady over the past year at 5 percent, down from a peak of 8.6 percent in the first quarter of 2006. The percentage of flipped home sales bottomed out nationally in the third quarter of 2008, at 3.5 percent.
“The good news: [the national] flip rate is roughly in line with the non-housing bubble years and well below the 8.6% flip rate of all home sales in 2006,” the report stated. “The concern: there are some hot spots. While stable nationally, we’re having déjà vu: flipping is making a comeback in places such as Las Vegas and Miami, which saw high levels of flipping activity during the previous boom. Moreover, there’s evidence that house flippers may be sitting out in some markets. That’s because rapid price growth in some expensive markets may be making that initial buy too costly for house flippers.”
House flipping is a short-term speculative investment in the housing market. Moderate flip rates which mirror larger home price and buying trends can be indicative of a healthy housing market. Trulia’s study only includes data from traditional flips, wherein a house is purchased at market rate, improved and sold at an increased market rate.
This article originally published at http://dc.urbanturf.com/articles/blog/6_6_percent_of_homes_sold_in_dc_area_in_late_2015/10885
Most Popular... This Week • Last 30 Days • Ever
Landmark Theatres is in the final stages of negotiations that would have it operating... read »
The housing market last month was not as hot as September 2020, but that is probably ... read »
The next phase on the Center Block would deliver 166 apartments and 221 hotel rooms.... read »
DC's crane count still ranks as one of the highest among U.S. cities despite a declin... read »
The latest installment of Above Asking revisits two recently-featured listings in the... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
The preferred mortgage product among most home buyers is the fixed-rate mortgage. How... read »
STAY DC provides rental aid and utility payment grants to at-risk District residents ... read »
The yet-to-be-built home may set a new bar for luxury in the residential real estate ... read »
Federal Realty plans to eventually file a planned unit development application for th... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro