There was an article in the Dec. 8 edition of the Columbus (Ohio) Dispatch by reporter Jim Welker about how rising housing prices contributed to a decline in flips during the third quarter.
According to the article, there were 45,718 houses flipped in the United States during the months of July, August, and September. This was down about 1 percent from the second quarter. Mr. Welker obtained his data from Attom Data Solutions, which is the parent company of RealtyTrac.
It’s not a huge drop for one quarter, but the story is accurate in that a shortage of housing stock increases demand, which increases prices.
However, remember that it works both ways. You may have to pay more for a house to flip, but you should earn your money back on the sale as the demand remains strong. Also, the demand for a well-executed flip house should set your house apart from others on the market.
It has been a little more difficult recently to find solid, inexpensive flip houses, but they are still out there. Sometimes you just have to look a little harder.
Remember to touch base with your sources – real estate agents, relatives, and friends. All are potential sources for good flip houses.