Magazine article Mortgage Banking

Flips Share of Sales Dips in First Quarter

Magazine article Mortgage Banking

Flips Share of Sales Dips in First Quarter

Article excerpt

On May 7, Irvine, California-based Realty Trac reported that 4 percent of all home sales in the first quarter were flips. That was the lowest share since the second quarter of 2011 when the share was 3.4 percent, the company said.

Average gross profit on flips completed during the first quarter reached a new high of $72,450, according to RealtyTrac. That was up from $65,290 in the previous quarter and up from $61,684 in the first quarter of 2014.

The company's Q1 2015 U.S. Home Flipping Report showed that 17,309 single-family homes were flipped. The company defines a flip as a home sold for the second time within a 12-month period as part of an arm's-length sale.

Daren Blomquist, vice president at Realty Trac, commented, "The strong returns for home flippers in the first quarter demonstrates that there is still a need in this recovering real estate market for move-in-ready homes rehabbed to more modern tastes, particularly given the dearth of new homes being built. …

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