How the market is performing in flipping

Question

Hi all, how would I be able to find out how flipping houses is going in today’s market conditions? ( I am based in Australia)

Michael K Gallagher · Answer

@Grace Tapfuma I think it is very asset class and operator specific.  If you are trying to find data metrics to track and make a sort of "index" for if a market is favorable to flipping or not...I have some ideas.

1) you could look at homes on the MLS that are recently sold, and you can set filters to capture "flips" based on previous price and previous date transacted for the property.

2) You could look at general home price appreciation is specific markets or sub markets of interest.

3) you could also look and track things like permit timing, or costs of construction/rehab to gain an understanding of the "spread".  With enough data you could break down a market into an "average distresses sale price PSF" then you could have a "average sale price PSF" and Average cost of construction PSF, but to get to that level you likely need to be running flips and tracking your own metrics to gather it.  or working inside a flipping company I suppose.

But like I said you could likely be successful flipping in any market, if you operate correctly and know your numbers.