Daytona Beach, FL – The Daytona Beach area has been named in the top 10 list for the nation’s highest house flipping rates as the national flipping numbers hit a 6-year high.
ATTOM Data Solutions’ 2nd quarter Home Flipping Report has the Daytona Beach area ranked #8 among the highest flip rates in the country’s top metropolitan areas. Tampa came in at #3, Lakeland at #7, and Miami got #10.
According to the report, national home and condo flipping’s up 14% from the 1st quarter of 2016 and it’s up 3% in August compared to the same month last year. Over 51,000 homes and condos were flipped nationwide in the 2nd quarter, making up about 5.5% of all home and condo sales.
According to Ron Wysocarski, CEO of The Wyse Home Team at Keller Williams Realty, several factors contributed to the high flip rates in the Daytona Beach area, including good lending conditions, new loan products for investors and high demand for turnkey homes in a low inventory market. “There was a lot of action in the market here during the second quarter, creating a sense of competition and urgency for buyers,” said Wysorcarski. “That further bolstered the existing demand for updated turnkey homes in the area, which flippers tend to provide.”
68% of flippers paid in cash for the homes they flipped in the 2nd quarter.
Nationally, return on investment (ROI) reached an all-time high. Homes priced above $5 million yielded the highest profit margins for flippers, with homes priced under $200,000 producing the 2nd highest profit margins. Homes priced below $200,000 also saw the largest share of flipping activity during the 2nd quarter.
Copyright Southern Stone Communications 2016.