The Flip Flops Are Back: Real Estate Sees a Boom in House Flipping

This isn’t the year 2000, but with all the house flipping happening lately, you might find yourself a little confused as to what year it is.

CoreLogic released a new report that found consumers are back to the flipping business, but with a different tactic than they did during the housing boom.

Instead, short-term investors are adding more value to the property before reselling. CoreLogic explains, “We’ve seen growing signs that flippers are getting increasingly good at buying properties at a discount while the premium they’re selling for has remained mostly constant.”

The flipping rate in the U.S. was 10.9% of all home sales in the fourth quarter of 2018. The areas with the highest median returns on a flip rate were:

  • Detroit: 95.9%
  • Philadelphia: 92.8%
  • Pittsburg 75%
  • Cleveland: 70%
  • Akron, Ohio: 65.7%

CoreLogic will be focusing on what specific improvements were made on these properties, the costs of the work, and the net economic profits earned by flippers.

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