The housing market is continuing to show signs of improvement and 2013 will usher in a new wave of house flippers intent on getting their share of the pie. But fixing and flipping homes will be different this year.
Due to the decreased number of distressed homes on the market, it’s becoming tougher for real estate investors to get their hands on discounted properties, rehab them, then turn a profit. According to RealtyTrac, “Foreclosure activity decreased annually in 12 out of the nation’s 20 largest metro areas, led by San Francisco (36 percent), Detroit (31 percent), Los Angeles (29 percent), Phoenix (27 percent) and San Diego (26 percent).” This will ultimately lead to slimmer profit margins, especially in lower priced areas.
On the plus side, the number of days homes are on the market has decreased significantly. In Los Angeles, the median days on market has dropped 19 percent in the past year. For a house flipper that’s putting out money and likely paying interest, this is excellent news.
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