Is the Chicago Flipping Market Done?
I've flipped two properties this year, with the most recent one sold in mid-September. I was excited to line up my next deal, but after speaking to my agent I learned that the market has hit a strange slowdown throughout Chicago. Suddenly, nearly no one is showing up for open houses, and many agents are reporting that they're getting few if any calls on their listings. Also, prices for distressed properties have increased significantly, as banks are trying to get top dollar for their foreclosures. Labor costs have increased significantly too. So now we have higher investment costs and the potential for slow resale or depressed resale prices. I've begun digging into research and am seriously considering shifting my strategy back to buy and hold, as I fear the window for flipping may be over.
I'm interested in knowing how other investors are thinking about approaching the Chicago market as we end 2017 and prepare for 2018. Is the flipping market in Chicago done? Is this the end of the cycle?