Home flips in Sullivan, Washington, Greene counties higher than U.S. Q4 portion


By DON FENLEY

The portion of home flips to all home sales were more prevalent in Washington, Sullivan and Greene counties during the fourth quarter than there were on the national  level. Sullivan and Washington counties also had a higher average return on investment than the national average when compared to Q4 a year ago.

According to RealtyTrac’s Q4 and U.S. Home Flipping Report, which shows that 136,269 U.S. single family homes were flipped in 2014, 5.4 percent of all single family home sales during the year. A  total of 32,578 U.S. single family homes were flipped in the fourth quarter, representing 5.3% of all single family home sales during the quarter. Up 11% from Q3 down 12% a year ago

Here what the Tri-Cities number look like:

Greene County –  14 flips, 6% of Q4 sales, down 14% from Q3, up 28% from last year

Sullivan County – 42 flips, 7% of Q4 sales, up 48% from Q3, up 49% from last year.

Washington County – 27 flips, 6.1% of Q4 sales, up 54% from Q3, up 85% from last year.

The average gross profit — the difference between the purchase price and flipped price — for completed flips of single family homes in the fourth quarter was $65,993, representing a 37.1 percent gross return. That was up from an average gross profit of $65,285 representing a 36.5 percent gross return in the third quarter, and an average gross profit of $63,017 representing a 36.4 percent gross return in the fourth quarter of 2013.

Here’s how those local comparisons look:

Greene County – Q4 avg. gross profit $29,950, 36.9% ROI ; $6,355, 9.6% ROI Q4 last year

Sullivan County – Q4 avg. gross profit $45,560, 57% ROI; a year ago it was $39,458, 53.2%.

Washington County – Q4 avg.  gross profit $18,389, 17%, ROI;  a year ago it was $30,629, 42.5%.

“Investors have picked much of the low-hanging fruit when it comes to home flipping over the past three years since home prices bottomed out in the first quarter of 2012,” said Daren Blomquist, vice president at RealtyTrac. “As home price appreciation slows to single digits in most markets, flippers need to be more selective and creative about the properties and neighborhoods they target.

“In many cases the best neighborhoods for profitable flipping in a slower-appreciating market are those that come with a higher risk because of location and condition of properties, but also have a bigger upside if investors are able to correctly predict the path of progress in the region,” Blomquist added. “It appears that most investors completing flips in the fourth quarter were able to do just that. Even though the share of flips was down from a year ago during the quarter, the average gross return per flip increased.”

RelatyTrac’s full report and charts can be found at http://www.realtytrac.com/news/real-estate-investing/flipping-report-q4-and-year-end-2014/

 

 

 

 

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