House Flipping: How Will it Change in 2017?

In 2017, house flipping will likely see another strong year. Of course, this year brings with it a bit more unpredictability than years past, but even so, the experts have several big predictions that will impact house flippers this year. Let’s take a look at some of the most anticipated house flipping trends this year.

• Mortgage rates and prices will go up, and affordability will go down.

Like last year, the overall US housing market will be a seller’s market in 2017. Though median incomes are on the rise, the boost in mortgage rates and home prices that are expected this year will make it harder for average Americans to buy homes. As a result, the rental market will remain strong. House flippers who have trouble finding reasonable flips in their area may want to consider a buy and hold approach instead.

That said, experienced house flippers are expected to put up strong numbers again this year due to the strength of the economy. Flippers who focus on up-and-coming neighborhoods and get all of their ducks in a row early will be most successful this year. That includes lining up contractors, realtors, accountants, and house flipping loans before the right property goes on the market. As always, strong market research is also a must in 2017.

• Millennials and Boomers will be the big buyers.

The two main groups that will be looking for houses this year are Millennials and Baby Boomers. A large chunk of the Millennial population, which is now the largest portion of the US population, will be entering their early- to mid-thirties, which means they are settling into strong careers and looking to buy homes for their growing families. House flippers should pay particular attention to neighborhoods that draw this buying group and focus on the amenities that matter most to them, such as the proximity of good parks and schools.

Boomers, the other major buying segment, are looking for retirement homes. The oldest Boomers are entering their late sixties and are looking for communities with other people their age and a lot of activities to keep them occupied. House flippers should look beyond the traditional retirement cities like Phoenix and Palm Springs to some of the newer destinations like Hemet, CA.

• Buyers will prefer “surban” communities.

Millennials in particular aren’t interested in the mundanity of the suburbs, but at the same time, downtown living can be too overwhelming and expensive for a growing family. The perfect compromise is “surban” neighborhoods. These areas tend to be just outside of city centers and offer a mix of housing options, ranging from single family homes to luxury condos. Walkability is a key factor of surban living, particularly proximity to things like great nightlife, brunch spots, museums, and farmer’s markets. House flippers would be wise to focus in on these sorts of communities as they pop up around the country.

All in all, savvy house flippers with access to reliable funding and their ears to the ground should continue to do very well in 2017.