Email Print

Home flipping on the rise in S.C.


By Ashley Barker
abarker@scbiznews.com
Published Jan. 30, 2014

In 2013, more than 155,000 homes were flipped, a 16% increase from 2012 and a 114% increase from 2011, according to data from RealtyTrac.

Home flipping refers to the practice of purchasing a home and then selling it again within six months. Flipped homes accounted for 4.6% of all single-family homes sold last year in the country, RealtyTrac’s Year-End and Q4 2013 Home Flipping Report said.

The average gross profit for a home flip, which is the difference between the flipped price and the price the flipper purchased the property for, was $58,081, the report said. It took about 84 days to complete a flip in 2013.

Daren Blomquist, vice president of RealtyTrac, said strong home price appreciation boosted profits for flippers last year despite the shrinking inventory of lower priced foreclosure homes to purchase.

“For the year, 21% of all properties flipped were purchased out of foreclosure, but that is down from 27% in 2012 and 32% in 2011,” Blomquist said in a statement. “Meanwhile flipped homes were still purchased at an average discount of 13% below market value in 2013, the same average discount as 2012, indicating that investors are finding discounted buying opportunities outside of the public foreclosure process — particularly in those markets with the biggest increases in flipping for the year.”

In South Carolina, 2,428 flips were made in 2013, which was 4.4% of all single-family home sales, RealtyTrac said. The average purchase price was $131,071, and average flipped price was $165,375. There were 2,213 flips in 2012 in the state, and 1,066 homes were flipped in 2011.

In the Charleston-North Charleston metropolitan statistical area, which has nearly 300,000 housing units, there were 477 flipped homes in 2013, or 4.85% of all sales, the report said. That’s a 70% increase from 2012, when 208 homes were flipped. The average purchase price for homes in the area was $177,553, and average flipped home price was $225,275.

In the Columbia metropolitan statistical area, which has more than 325,000 housing units, there were 154 flipped homes in 2013, or 2.12% of all sales, the report said. That’s a nearly 39% decrease from 2012, when 251 homes were flipped. The average purchase price for homes in the area was $109,736, and the average flipped home price was $125,355.

In the Greenville-Mauldin-Easley metropolitan statistical area, which has more than 275,000 housing units, there were 261 flipped homes in 2013, or 2.54% of all sales, the report said. That’s just one more flipped home than in 2012 and 66 more flipped homes than in 2011. The average purchase price for homes in the area was $104,204, and the average flipped home price was $144,131.

Reach Ashley Barker at 843-849-3144 or @AshleyNBarker.

Do you give this article a thumbs up? Thumbs_upYes

Comments: