RealtyTrac has released its U.S. Home Flipping Report for both 4Q2015 and full-year 2015. The report indicates that of all single-family homes and condos sold last year, 5.5% of them were flipped. This percentage is up by .2% from 2014, which is the first annual increase in the share of homes flipped in four years. RealtyTrac reports that there were 110,008 individuals or entities that completed home flips in 2015, which is the highest since 130,603 individuals flipped homes in 2007. The increase in home flips doesn’t necessarily indicate a growth in the housing market, however.
"When home flipping numbers go up, it is usually an indication that the housing market is in trouble," said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market, where the share of homes flipped in 2015 was down from 2014 despite being above 2005 levels. "The problem with a rise in home flipping is that these sales artificially inflate home prices, making housing even less affordable for buyers and increasing the risk of a bubble."
For more information about the report, or to find home flipping percentages in an area near you, click the link below.