Flipping Profit High In CA Metro Cities

Flipping Profit High In CA Metro Cities

While flipping increased nationally, the number of homes and condominiums flipped in California decreased in 2015. A recent report on 2016 housing trends now suggests home flipping may be gaining traction again in California.

 The nation saw a 3.1% increase in flipped residences. These flipped residences are defined as a property sold in a transaction twice in 12 months. These made up 5.7% of all residential sales last year. This is the highest amount of flipped homes since 2006. As for California, flipped homes made up a fair portion of all home sales in several metro cities within the state.

 

The mapped data above illustrates that home flipping in California makes up about 10% of homes in half the state. This is a lower percentage than in the 2013 peak.

Profitability

In Q2 of 2016, there were nine metro areas where the average gross flipping profit higher than $100,000. Five of these were in California, San Diego being one of them.

-San Diego ($111,250)

-San Jose, California ($161,000)

-San Francisco ($146,000)

-Los Angeles ($125,000)

-New York ($124,160)

-Oxnard-Thousand Oaks-Ventura, California ($110,000)

-Baltimore ($105,000)

-Washington, D.C. ($104,500)

-Seattle ($102,900).

Home flipping in California

The 5.5 percent share of U.S. homes flipped in 2015 was still well below the peak of 8.2 percent of U.S. homes flipped in 2005. But counter to the national trend, the share of homes flipped in 2015 was above 2005 levels in a few markets, including San Diego, which was 4 percent above 2005 levels. Some areas in California have seen increases in home flipping compared to the prior year. In fact, among the areas nationwide with the highest percentages of home flips, at least 20% of all local home sales, were these Californian cities. Though some California neighborhoods still experience substantial speculation, the data reveals these figures are often lower than home flipping trends from the previous speculation period.

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