6. Raleigh, N.C.
–Avg. gross profit: $69,253
–Homes flipped through mid-2012: 455
–Avg. home price: $223,359 (78th highest)
–Avg. days to flip: 114
The greater Raleigh area has seen a 63% increase in the number of flipped home sales for the first half of 2012,compared to the first half of 2011, while the available inventory of foreclosed homes has remained constant.
And yet, in Raleigh, which is North Carolina’s second-largest housing market after Charlotte, median home prices declined by only 8.2% from pre-recession peak value. The U.S. median home price fell by more than 33% during the recession.
House flipping’s status as an aspirational American pastime took hits during the recession but, like disco or SUVs, it has never gone extinct.
It is returning — with a vengeance. Cable TV shows glorify expert flippers and infomercials flog seminars for novice investors eager to dive into this risky market.
As many housing markets stage a recovery, there is a deep inventory of foreclosed or bank-owned properties that investors can tap at below-market prices.
House flippers have grossed an impressive $29,342 on average for each property in the first half of this year, according to RealtyTrac, a foreclosure industry data supplier. From purchase to sale, the average flipped home is turned in 106 days.
“A small player would have a better opportunity in a small town,” says Christopher Leinberger, a real estate professor at George Washington University’s School of Business.
Excluded were metro markets with fewer than 205 flips, the national average, in 2012. Included was 24/7 Wall St.’s analysis of home price change projections from Fiserv as of the first quarter of 2012. Additional home price data were collected from Trulia.com, a real estate posting website.
DETAILS: 24/7 Wall St.