While the nation continues to rebound slowly from the recession and housing market crash there are plenty of wonderful opportunities for home flippers. We’ve looked at the data and assembled a collection of places to watch in the coming months. Each of these cities has something to offer investors and flippers, whether it is an excellent return on the investment, speedy turnaround times or low median prices vs. the all-time peak sales prices in the area.
5 Hot Markets for Home Flippers
ReatlyTrac ranked this flip happy city in its top 10 most profitable places to flip a home – the average return on investment for a flipped home was over 50% in the city and metropolitan area. Low sales prices on distressed homes combined with a market hungry for pristine and remodeled homes leaves a big margin for profit for those who are ready to take on a flip project, according to RealtyTrac experts.
Not only will you find amazing music and barbeque in Memphis, you’ll be able to find some outstanding flipping opportunities in the city and surrounding areas as well. RealtyTrac reports that Memphis is in 9th place for 2015 when it comes to flipping returns; 11% of all homes sold in the first quarter of the year. Prices here were at a 10 year high in 2007—with a median price of just over $89,000, according to Zillow.com. Today, the median price is still just over $67,000 leaving lots of room for flippers to buy low and sell for a profit.
Fresno and San Bernardino California
While some cities have rebounded to the point of being not flipper friendly at all – San Francisco is among those not amenable to flipping at this time – many others have plenty of room for fillers to make a profit. Both Fresno and San Bernardino were identified by RealtyTrac as being hotspots for flipping in 2015 and beyond. At 6.5%, the share of flipped homes is higher than average in San Bernardino, while Fresno is notable for having one of the highest shares in the country at 9.5%.
Lakeland, Ormond Beach, Tampa and Miami Florida
Pretty much all of this tourist destination state was hit hard by the recession, but home prices are on the rise. While home values continue to climb in Florida, they are still well below their peak prices. Ocala and Miami lead the state, with prices below the 10 year peak but still on the rise. While prices are higher in Miami than almost anywhere else in the state, it is 3rd in flipping volume, according to RealtyTrac. Both Tampa and Ormond Beach continue to rebound, but prices in these areas are still well below their peak median numbers; Tampa is also seeing a large number of young adults buying first homes – millennials account for 65% of the home purchases in the metro area last year.
While homes across the state were hard hit by the recession and many cities, including Las Vegas are still ripe for flipping, the small town of Fernley lead the nation in home flips in the second quarter. The new Tesla battery plant likely has something to do with the resurgance of interest in this area, according to the Las Vegas Review Journal.
All median home prices and stats from zillow.com