If there is one bright spot in such a harsh winter, it is that sales of flipped homes in the Detroit metro area have been generous over the past year. According to a recent DetroitNews.com report, sales of flipped homes in Oakland County were fourth in the nation in 2013. The process of buying distressed homes, quickly repairing and renovating them, and selling them for a profit accounted for eight percent of all real estate sales last year in Metro Detroit, and just over 13 percent of real estate sales in Oakland County.
The number of flipping sales was also an increase over such sales completed in 2012. With the increase of sales came an increase in profits.
With the average home being purchased for $76,000 and sold for $105,000, the average profit on a flipped home was $29,000 in 2013. This was nearly double the profit realized on such homes in 2012.
Overall, the trends realized in the Metro Detroit area mirrored the trends seen in other real estate markets around the country. Flipped homes that sold for a profit accounted for 4.6 percent of all real estate transactions across the U.S. in 2013. This was an increase from the 4.2 percent of home sales in 2012, and was nearly double the sales of flipped homes in 2011 (2.6 percent).
As the economy gets better, it is reasonable to believe that real estate values will continue to increase, which will create more opportunities for real estate investments in Michigan.
Source: DetroitNews.com “Oakland County ranks fourth in nation in house flipping,” Louis Aguilar, Jan. 30, 2014