This week Realtor.com released its list of “Best” and “Worst” places for home flippers to make a profit. Realtor.com reports that despite a recent overall decrease in profit from home flipping, there is a record number of homes being flipped. There were over 59,000 homes flipped just from April to June 2021 with Phoenix leading the nation in amount of homes flipped!
#2 Phoenix, AZ
Median list price in September: $475,000
Median profit on a flip: $85,500
Median profit percentage change: 7.7%
Phoenix is bucking the national trend of shrinking profits. Profits on flips here are up 7.7% since last year as buyers from California and elsewhere have been looking to decamp to the desert. It’s emerged as one of the nation’s biggest real estate hot spots for families jonesing for dry heat.
Little known fact: The Phoenix metro area leads the nation in home flipping. It had the highest number from April to June as buyers, especially retirees, are looking for turnkey ready homes. Major construction of housing developments and retirement communities in recent years is also helping ease the squeeze on inventory. And that gives flippers some room to scoop up older homes and resell them once they’ve been fixed up.
Buyers here want homes to be as low maintenance as possible, a boon for flippers. A three-bedroom home that was sold last year for $320,000 is now back on the market for $395,000 after some updates.