What The Flip?
Home prices continue to be a topic of discussion among buyers and sellers in this market. Because our Eastside market has such a high demand for inventory leaving a surplus of buyers with limited options to choose from, the homes that are available to buy sell for higher than asking price due to competition amongst buyers.
According to ATTOM Data Solution’s Q4 and Year-End 2017 U.S. Home Flipping Report, 33 of the 52 major metro areas increased from the 2016 total homes purchased to be fixed and flipped (sold), Seattle not one of them. In 2017, 207,088 U.S. single family homes and condos were flipped to sell. This not only shows a 1 percent increase from 2016 but it set a record with an 11 year high in total fix to flip homes in the country.
Seattle showing a decrease in total homes purchased to flip from the year prior is no surprise considering the unbalanced, sellers advantage market we are currently experiencing. The investment it takes to buy a property here buying a property as-is is already a huge purchase. Once fixed to flip (sell), it hasn’t provided the best return once the property is completed and sold. There is profit if conducted correctly but it’s not the most efficient use of time and funds if looking to capitalize in the next couple years. In markets with an enormous demand for inventory like Seattle, it is common that individuals and companies shy away from flip projects.
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Picture Credit: Flipping Seattle