Recently, an article by the Miami Herald described how home flipping in South Florida continues to be a popular business in South Florida- despite rising prices and the challenge of finding a great deal.
According to the Herald, these flippers do not see a large crash in their future. Instead, they say they are riding the wave of rising home values to steady profits.
According to a recent release of statistics by RealtyTrac, nearly 1,400 family homes were flipped in the Miami-Dade, Palm Beach, and Broward counties in the second quarter of 2015. RealtyTrac defines a flipped home as one that sells twice in one year. These flips accounted for about 10% of all home sales, the largest percentage of sales allotted to flipping in all metropolitan areas in the nation. In other major metro areas, only around 4.5% of sales are flips.
Vice President of RealtyTrac, Daren Blomquist, calls South Florida a “hotspot” for flipping. Blomquist says that the region’s high rate of foreclosure and strong record of price growth make South Florida a good bet for house flipping.
Blomquist also says that because house flips are actually decreasing (6% year over year), that shows that the current housing market is not a bubble, but is healthy and steady. Profits are also still high from home flipping, with the average price of a home bought to flip in South Florida was $220,000 and then sold for $302,000 about six months later. In the world of home flips, even considering costs of improvements and repairs, this is a good profit.
Miami-Dade county shows some of the best potential: home prices there have gone up 8% in the last year with one of the fastest rates in the nation. Flippers who buy now can cash out with much higher sales after giving the homes a facelift.
If you are a current home flipper, looking to be one, or just want to find the perfect piece of real estate for yourself in South Florida, look no further than RE/MAX Paradise! We have many amazing properties listed available to you today, and expert agents ready to answer your questions
Home flipping in South Florida continue to show great profits
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