According to a recent report from Bloomberg News written by Prashant Gopal. According to the report 31,000 houses were flipped in the 2nd qtr which represents 4.6% of all home sales. Realty Trac said that's down from 6.2% for the same qtr last year.
The report goes on to say that flippers are "making smaller profits and finding fewer opportunities." They attribute this to a slowing of the 2 year surge in real estate prices.
And the report further says that distressed homes account for the lowest percentage of sales since 2008.
Darren Blomquist, vice president at Realty Trac said, "The flippers formula is to buy a property that they can add value to at a discount and sell at a premium. Now home price appreciation has slowed dramatically in many of the flipping meccas and the availability of discounted properties has dried up."
@David Krulac From my own observation, it has been more difficult to find flips in the past year or so.
This is why investors need to have more than one arrow in their quiver, and be ready to change strategies as markets change. I'm focusing more on cash flow deals now.
We call this a thinning of the herd event. Lots of investors, spoiled by the foreclosure market, who really have no skills buying other than standing at the courthouse steps or faxing/emailing dozens of offers a day to real estate agents, are now being starved out.
Those with people skills and knowledge who have focused their efforts on building a sustainable investing business model will continue to prosper.
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