A Place in the Market for Flipped Homes
Relatively high gross returns on investment demonstrate that there is still a place for house flipping in the national and local real estate markets. RealtyTrac revealed that 4 percent of total single-family home sales, or 17,309 homes, were flipped in the first quarter of 2015. San Diego County accounted for 6.1 percent of the total volume or 1,055 homes.
There is a demand for move-in ready houses that have been retrofitted for modern tastes especially as there is a shortage of new housing starts recently and inventories are growing slim.
The average gross profit, nationally, for completed flips in the first quarter was $72,450, up from $65,290 in the last quarter of 2014. The average gross return on investment (ROI) was 35.1 percent for completed flips in the first quarter, which was only slightly down from 35.3 percent in the fourth quarter of 2014.
Those looking to sell their home and then purchase a new one will find mortgage rates near an all-time low. Conforming no point 30-year fixed mortgages are averaging 3.875 percent while 15-year mortgages are averaging 3.125 percent.
For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.