With home prices reaching record levels in many markets around the country, some potential buyers have started pointing fingers at house flippers, claiming that flippers drive prices up at an unsustainable rate. While it’s true that house flippers do improve the value of homes, the level of house flipping around the country is still within the healthy range. The overall housing market increase can be attributed to a number of different factors, ranging from the strength of the economy to the sheer number of Millennials who are currently on the market for their first or second home.
Take the example of San Diego. A local news channel recently did a report on house flipping in the area, asking whether flippers are pushing other buyers out of the market. The report found that while on an individual basis, certain buyers miss out on homes because flippers can act faster than they can with cash offers, that’s not a defining trend for the market as a whole.
According to Attom Data, flipping rates are actually substantially lower in San Diego than other parts of the state and country. WalletHub ranked San Diego as the 127th best city to flip houses in – so neither great nor terrible.
On a neighborhood level, Attom Data found that while many neighborhoods in the northern half of San Diego have A or B grades for flipping, most of the neighborhoods surrounding downtown San Diego have C and D rankings. Interestingly, the most expensive neighborhoods tend to score better, whereas the neighborhoods with what were reasonably-priced two and three-bedroom homes a few years ago have become too unaffordable for target buyers, which is why they aren’t great neighborhoods for flipping.
As is always the case for house flippers and buyers in general, doing your homework and having the inside track makes a big difference in this hot housing market. Flippers with house flipping loans in place will beat everyday buyers to the punch every time, but they still need to compete against other flippers for the best prices. That’s why it’s so vital to find residential rehab loans that are funded quickly, provided by respected lenders, and backed by fair terms.
To learn more about ZINC Financial’s rehab loan programs, give our office a call anytime at (888) 552-6637.