By Ashley Barker
Published May 7, 2014
In the United States the percentage of homes that are being purchased and sold again within six months went down this year when compared with last year.
In the first quarter of 2014, 3.7% of all single-family home sales were flips, according to a U.S. Homes Flipping Report recently released by RealtyTrac. In the first quarter of 2013, flips accounted for 6.5% of sales.
Flipped homes were sold for an average of $55,574 more than the original purchase price during the first quarter of 2014, the report said. A year ago, they averaged $51,805 more.
“Slowing home price appreciation early this year in many of the most popular flipping markets put some investors in danger of flying too close to the sun,” said Daren Blomquist, vice president at RealtyTrac, in a statement. “But investors appear to have recalibrated their flipping strategy, accounting for the slower home price appreciation, even if that means fewer flips.”
Blomquist said the new strategy is another good sign that “this housing recovery is behaving much more rationally than the last housing boom, which was built largely on unfounded speculation rather than fact-based calculations.”
The report also found that flips completed in the first quarter took 101 days on average, which is up from 92 days in the previous quarter and 79 days in the first quarter of 2013.
About 58% of all flipped properties in the United States were three-bedroom homes, while 21% were four-bedroom homes, and 17% were two-bedroom homes, the report said.
In South Carolina, 3.2% of all single-family home sales were flips during the first quarter of 2014, according to RealtyTrac. In the first quarter of 2013, flips accounted for 9.4% of sales in the Palmetto State.
The average purchase price was $128,731 in S.C., and the average flipped price was $166,843 in the first quarter. That made the average gross profit for a flipped home roughly $38,000, the report said.
Flipping data for select S.C. counties
Flipped homes Q1 2014
Flipped homes Q1 2013
Average flipped price profit Q1 2014
Reach staff writer Ashley Barker at 843-849-3144 or @AshleyNBarker on Twitter.