South Florida is leading the nation in home flipping transactions.
In the third quarter, flipping accounted for 7.8 percent of South Florida sales, which is nearly double the national average of 8 percent. RealtyTrac reported 1,190 flips during the quarter and defines a flip as a house being bought and sold again within 12 months. According to the South Florida Business Journal, the average purchase price was $201,049 with an average resale price of $281,883 and average gross profit of $80,835. That represents a 40 percent return on investment, compared with the national average of a 35 percent return.
“These third quarter numbers show that good opportunities still exist for those in tune to the market,” said Keyes CEO and president Mike Pappas in a news release.
Daren Blomquist, a vice president at RealtyTrac, said flippers are taking advantage of the aging housing market by buying older homes and renovating them to create modern appeal. [South Florida Business Journal] – Chris Guanche