Categorized | Residential

House Flipping Becoming Less Common

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There once was a time when house flipping would provide great wealth to those involved. However, with European debt concerns, and worries of a double-dip recession in the United States, the housing market has virtually stalled in many areas.

With the housing market facing continuous declines, the practice of flipping a house for profit has become more or less an impossible task. No longer is selling a home a guarantee. In fact, for those investors still involved in flipping homes, only fifty percent of those homes purchased were re-sold in the past year. As such, investors are losing money as they are faced with a glut of inventory.

Buyers are staying away from the housing market entirely, and thus, aren’t even giving a thought to the idea of buying a house for means of profit on a resale. Those are looking to profit in real estate are looking towards purchasing rentals as opposed to buying homes intended for flipping.

What had made house flipping possible in the past was that homes could be bought and sold almost simultaneously for a profit. With demand severely down in the current market, investors can expect to wait as many as five years to resell a home. With the increasingly supply of foreclosures on the market, it would be an insurmountable task to even attempt to buy a home and then sell it immediately after for profit.

With the current expected turnaround time for the resale of homes, the practice of house flipping has essentially disappeared. There is no longer any money in house flipping, and many of those once involved have since turned to renting to bring in income.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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