South Florida was among the Top 15 regions in the nation for home flipping in 2016, according to ATTOM Data Solutions.
Counting a flip as when a house or condo sells for a second time in a 12-month period, the company tracked flips throughout the United States. Nationwide, flipping reached a 10-year high with 276,067 homes. That was up 3.1 percent from 2015. Flips accounted for 5.7 percent of all sales.
South Florida ranked No. 11 with 8.8 percent of its home sales in 2016 being flips. The tri-county region had 10,157 home flips, up 2.2 percent from 2015. The median purchase price for flippers was $137,600 and their median sales price upon exiting was $208,000. That’s a median profit of $70,400 – although many of those homes probably received costly improvements.
Flips as a percentage of home sales were 9.8 percent in Miami-Dade County, 9 percent in Broward County and 7.6 percent in Palm Beach County.
The hottest South Florida zip codes for flipping as a percentage of home sales were 33054/Opa Locka at 23.6 percent and 33147/West Little River at 21.5 percent.
“Home flipping was hot in 2016, fueled by low inventory of homes in sellable or rentable condition along with a flood of capital — both foreign and domestic — searching for the returns and stability available with U.S. real estate,” said Daren Blomquist, senior VP at ATTOM Data Solutions. “Investors in search of flipping returns are increasingly willing to move to secondary and tertiary housing markets and neighborhoods with older, smaller properties that are available at a deeper discount.”
Nationwide, the top regions for home flipping by percentage of sales were Memphis, Tennessee, Clarksville, Tennessee, Visalia-Porterville, Calofirnia, Tampa and Daytona Beach.
Original Content Bizjournal