IRVINE, CA—Several California markets are among those with the most home flips in the past year, according to a report from RealtyTrac. Los Angeles, San Diego, Inland Empire and Sacramento are listed among the top 22 US markets that saw the greatest number of home flips between April 2013 and March 2014.
The practice of home flipping remains a viable way to bulk up inventory in markets where stock is low. The firm lists the top 14 counties nationwide for flipping, which includes counties that had at least 100 single-family homes flipped in the last 12 months, saw an average gross return of 30% or more on flips during that time period, had an unemployment rate below the national average of 6.7% in March and had an increase in foreclosure activity in the first quarter of 2014 compared to a year ago, since additional foreclosures provide more inventory for investors to flip. Those counties include Prince George’s County, MD; York, PA; Baltimore; Campbell, KY; New Castle, DE; Saint Marys, MD; Anne Arundel, MD; Wright, MN; Bergen, NJ; Montgomery, MD; Berks, PA; Monroe, FL; Nassau, NY; and Middlesex, NJ.
In addition, RealtyTrac lists the top 22 markets for the most home flips in the past year. Each had at least 1,000 single-family homes flipped between April 2013 and March 2014. Of those markets, four were in California: Los Angeles-Long Beach-Santa Ana, San Diego-Carlsbad-San Marcos, Riverside-San Bernardino-Ontario; and Sacramento-Arden-Arcade-Roseville.
Daren Blomquist, VP of RealtyTrac, tells GlobeSt.com, “Six of the top counties for flipping are in this state. Investors in these areas are seeing gross profits over 30%, and with 77% of the homes in the state built before 1989, there are plenty of properties primed for rehab.”
On the other hand, the amount of flippable inventory from foreclosures looks to be dwindling. As GlobeSt.com reported earlier this week, the number of short sales and foreclosure sales combined on US residential properties accounts for the lowest share of sales year-to-date, according to a report from RealtyTrac. The combined total of these sales accounted for 15.6% of all sales in April, down from 16.5% of all sales in March, and down from 17.2% of all sales in April 2013.