The days of making unbelievable profits from house flipping may be drawing to a close, at least in the Bay Area. While San Jose and San Francisco actually lead the country in flipping houses, according to a recent study by Trulia, slower price gains in the Bay Area mean lower profits or even selling at a loss.
Price flipping, of course, is buying, fixing up and reselling homes in a short time at considerable gain (hopefully).
According to analysts flips accounted for 2.5 percent of the East Bay’s home sales from 2013 to 2014, down from 3 percent a year ago. The South Bay was 4 percent, which is up from 2.8 percent a year ago, and San Francisco was 3.8 percent, up from 2.1 percent a year earlier. Currently, San Jose and San Francisco rank number 1 & 2 in house flipping.
Why the current risk? Today’s high house prices cut into profit when the home is resold, making flips far riskier. House flipping professionals say you better be sure you’re getting a price at least 30 percent below market or you may end up losing money.
House flippings Top Ten:
- San Jose
- San Francisco
- Knoxville, TN
- Bakersfield, CA
- Nashville, TN
- Orange County, CA
- Fort Lauderdale, FL
- Ventura County, CA
- Cambridge-Newton-Framingham, MA
- Riverside-San Bernardino, CA