HousingWire – Brena Swanson
Home flipping activity dipped 13% from the same period a year ago, with 32,993 single-family home flips recorded in the third quarter of 2013, RealtyTrac reported Thursday. "Increasing home prices over the past 18 months combined with decreasing foreclosures have created a market less favorable to the high quantity of middle- to low-end bread-and-butter flips that we saw late last year and early this year," said Daren Blomquist, vice president of RealtyTrac.
Real estate investors made an average gross profit of $54,927 on single-family home flips in the third quarter, up 12% compared to an average gross return of $48,893 last year. The uptick in gross profit was buoyed by an increase in high-end flips on homes sold off by flippers for $750,000 or more. A total of 968 high-end homes were flipped in the third quarter, up 34% from a year ago.