Flipping Houses - Market Analysis
When you are looking to purchase a property for a flip, you want to make sure that the area in which you are purchasing is a good area. How can you tell and where can you find the information? The purpose of this article is to instruct the flipper on where they can find the types of information needed to property analyze an area.
Flipping Houses | Home sales rising?
Are home sales in the area rising or falling? If yes, then you will want to proceed in this market. This information is important because a flipper will want to know if the area is appreciating or heading for a downturn. The best sources to find this information are with a Realtor, using the Multiple Listings Service (MLS), the NAR website, or reading articles in the newspaper.
Flipping Houses | Days on market falling?
Are homes taking longer to sell or are they selling quicker? If the properties days on market is falling, then properties are selling quicker. The best source for this information is the MLS or have a Realtor perform a Comparative Market Analysis for you.
Flipping Houses | Is Net Migration Positive?
Are more people migrating to the city and to your area or are they leaving? Obviously, if more people are leaving, supply of houses is higher and demand, along with price, become lower. A flipper can find this information by calling the local Chamber of Commerce, looking up information with the Census Bureau or even the Port Authority.
Flipping Houses | Economic Growth?
Is the economic growth positive? If so, it’s a good time to fix and flip a house. If the economy is getting stronger, traditionally, this means that there are more jobs and loans are easier to obtain. These two factors lead to more potential buyers and is good for the flipper. The best sources for this information is the Chamber of Commerce and the newspaper.
Flipping Houses | Housing affordability index?
Can people afford housing in this area? The housing affordability index is an estimate of housing affordability based on the price of the median sale price of an existing single-family home, median income, mortgage rates, assumptions concerning down payment, property taxes, and insurance. The best sources for this information is the NAR and the National Homebuilders Association.
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