The sun is shining on the California housing market and sales of luxury homes have gone through the roof. House flippers from around the country have recognized the increased demand and are moving in for the kill.
“DataQuick reported that 697 homes sold for more than $5 million in 2012, up from the previous record of 491 in 2011,” according to an article by Realtor Magazine. In just one year, the record jumped a stunning 30 percent. But why?
The truth is that luxury homebuyers are much different than typical buyers, and ultimately they’re motived by different things. ”Job security, downpayment sizes, and mortgage interest rates don’t play the same role. Returns on investments in a low-interest-rate financial environment and safe-haven investing do play a role,” stated John Walsh, president of DataQuick.
Since the demand is clearly present, house flippers are descending on California to capture their share of the pie. Typically when you think of house flipping pictures of distressed homes come to mind, but that’s not always the case. There’s a huge market for flipping luxury homes.
As we covered in a previous article titled “Jeremy Renner The Actor, House Flipper Extraordinaire,” Jeremy Renner has been flipping multi-million dollar properties for quite some time. His newest flip, which was purchased for $7 million in 2010, is a 10,000-square-foot estate in Holmby Hills, Los Angeles. After a little (well, a lot) of work, the property is now on the market for $24.95 million.
If $24.95 million seems like a crazy amount to pay for a house, or anything else for that matter, then you’ll be surprised to hear that the most expensive home sale in U.S. history took place in 2012: a home sold in Woodside, California for a whopping $117.5 million.
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