Newspaper article Sarasota Herald Tribune

Southwest Florida Still a Hot Spot for Home Flipping

Newspaper article Sarasota Herald Tribune

Southwest Florida Still a Hot Spot for Home Flipping

Article excerpt

RESIDENTIAL REAL ESTATE

Southwest Florida remains one of the nation's hot spots for home flipping.

The Sarasota-Manatee region ranked ninth among major U.S. metro areas in the third quarter, with 8.5 percent of all single-family home and condominium sales counted as flips -- sold for the second time within 12 months in an arms-length transaction.

Sellers averaged a gross profit of $57,117 per flip in the July- September period, a gross return on investment of 41.4 percent, according to a report by real estate researcher RealtyTrac.

That average gross profit -- which does not include rehab costs and other expenses -- increased by $12,663 over the year.

In the two-county region, 476 flipped homes and condos sold for an average $195,108 in the quarter. Flippers needed an average 173 days to find a buyer, five days more than last year.

Florida maintained its status as the flipping epicenter. Eight of the top 10 metro areas for home flips were in the state, RealtyTrac said.

"After curtailing flipping activity last year due to slowing home price appreciation and shrinking inventory of flip-worthy homes, real estate investors have started to jump back on the flipping bandwagon in 2015," said Daren Blomquist, vice president at RealtyTrac.

"On the acquisition side, investors are finding creative ways to pinpoint potential flips in the off-market arena, and on the disposition side investors have a bigger pool of potential buyers thanks to a surge in FHA buyers this year, many of them first-time buyers looking for starter homes," he said.

In Charlotte County, 87 flips accounted for 7.0 percent of all home and condo sales, ranking 27th nationwide.

Flipped homes sold for an average $151,521 in Charlotte, a gross profit of $57,579 and a return on investment of 61.3 percent -- an ROI that ranked fourth highest in the U.S.

Home flips jumped by 34 percent in the county over the year, while the average time to sell increased by 44 days to 207 days. …

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