Let’s take the good news for what it is: According to this article, “The latest monthly housing report from Realtor.com® reveals that the total number of homes for sale in March was 23.5% above last year’s levels, marking five months of inventory growth.
The news is especially bright given that prior to this streak, inventory slumped for 17 months straight.”
But, as this article points out, sellers have to be reasonable when it comes to establishing their go-to-market prices. And the company’s chief economist, Danielle Hale, says: “Home prices this year are expected to move largely sideways. We’ll see the usual climb from spring into summer, but I don’t think we’ll see a big jump over prices one year ago since many homebuyers are already at the edge of their budgets, and newly constructed homes and steady rents provide cost-effective alternatives that alleviate some of the price pressure we’ve seen on existing homes in recent years.”
Hiding in what she says is that this is a great time for your next fix-and-flip initiative, as the market is heating up and people are indeed purchasing!
Motley Fool’s Take on ATTOM Flipping Report for 2023
Where were the important nuggets in ATTOM’s report on fix-to-flip Profits and ROI nationwide? Motley Fool lays out how much you can make, and where, across the US.
At the very top of the list, they show houses flipped in Scranton/Wilkes-Barre/Hazleton, PA delivered the top average ROI: 112.5%.This is stratospherically higher than the average ROI on flips nationwide, which was 27.5%.
How much did the average flipper profit in 2023? About $66,000 gross. But 11 states were home to average gross profits over $100k, including PA, DE, MD, and NJ. Highest profits were grossed in DC in 2023: $157k!
A new study from NAR tried to identify architectural preferences of buyers across the country. What they discovered, though, is that preferences vary widely! Most people (34%) indicated a preference for historically traditional styles. Contemporaries were the choice of 26% of respondents. The smallest preference was for modern styled homes (just 17%) and “transitional” styles (the lowest at 12% of buyers).
Clive was a part-time flipper with a day job when he tackled his first few flips, and learned a lot about the real estate investment industry. Eventually he left his job to focus solely on rehabbing. He’s become an expert at project management, scheduling contractors to overlap if possible. Here are some of his tips:
He thinks any flip should take less than 6 weeks to do the work needed.
He takes a minimal salary and rolls the rest of the profits back into the investment.
He saves more by being a licensed realtor, avoiding a lot of fees on each deal.
