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IRVINE, CA—The incidence of home flippingnationwide is decreasing at the same time as average gross returnsare rising. According to a report from RealtyTrac, 3.7%of all US single-family home sales in Q1 wereflips—defined as home that were purchased and subsequently soldagain within six months—which is down from 4.1% in the fourthquarter of 2013 and down from 6.5% in the first quarter of2013.
On the “flip” side, the average sales price of single-familyhomes flipped in the first quarter was $55,574 higher than theaverage original purchase price, the report says. That gross profitprovided flippers with an unadjusted ROI of 30% of the averageoriginal purchase price. The average gross profit per flip a yearago was $51,805 for an unadjusted ROI of 28%.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
