Home flipping profits, sales remain strong in Q1
By Ron Trujilloemail@example.com
Home-flippers shrugged off fast-rising prices and higher interest rates during the first quarter, as flipped homes accounted for 6.9% of residential real estate transactions, the largest percentage since the first three months of 2012.
California, often considered the center of the home-flipping industry, had several metro region where home flips accounted for more than 8% of all home sales during the third quarter, according to ATTOM Data Solutions.
Flipped homes in Merced — an affordable city for Bay Area commuters — accounted for 10.3% of home transactions during the first quarter, grabbing the top spot in the state. But all of the major regions, from Bakersfield to Sacramento, reported flipped homes were at least 8% of overall home sales during the first quarter.
Flippers in these Central Valley communities enjoyed anywhere from $65,000 to $85,000 in profits. However, Stockton, once the epicenter of the foreclosure crisis a decade ago, had a nifty return of $90,400, easily the best in the Central Valley.
The Bay Area and Southern California had the largest dollar gains in the state, with San Jose’s average profit of $331,000 leading the way. San Francisco flippers enjoyed an average profit of $149,000, with Los Angeles at $140,000.
But those hefty paydays could decline very soon, says Daren Blomquist, senior vice president of ATTOM Data Solutions.
“Rapidly rising home prices boosted by low available inventory of homes for sale or for rent are padding profits at the back end when flippers sell, but those same market realities are eroding flipping returns at the front end by forcing flippers to pay more to acquire homes for flips,” he says.
Featured photo of home remodel photo by Africa Studio/Shutterstock
Bike-friendly cities SF, Sacramento earn top honors
Bike-friendly cities are all the craze, especially for millennials who are looking to buy their first homes.
Two California cities rank among the Most Bikeable communities in the nation, according to a recent Redfin report.
San Francisco finished in fifth-place in the nation, while Sacramento ranked No. 10. Minneapolis grabbed the top honor in the U.S.
Redfin took into account several factors for the report, including access to bike lanes, as well as road connectivity and hilliness (guessing San Francisco scored low on hilliness).
Redfin has added Bike Score ratings to 1,831 cities and more than 10,000 new neighborhoods.
“Among the biggest improvements made to Bike Score was adding OpenStreetMap infrastructure data, enabling us to identify bike paths, bike lanes and sharrows in thousands more cities and neighborhoods across the United States,” says Matt Lerner, Walk Score co-founder and Redfin’s senior vice president of product and design.
A quick note, the Most Bikeable report was based on major cities, so bike-friendly communities in California — such as Davis, San Luis Obispo and Santa Cruz — were not eligible for the national list.
Photo of bike riders at Golden Gate Bridge by Maridav/Shutterstock