A recent article in the Wall Street Journal reports that new housing construction and the rising levels of house flipping happening throughout the country are contributing to growth in the overall economy. Companies that sell such items as air-conditioning systems, cement mixers, carpets, and other home improvement devices have seen surges in their sales over the last quarter between 5-10%. One economist from Wells Fargo noted that the housing recovery will help lift businesses across the nation.
The improvement in the construction industry is partly due to the rising number of homes being built in America. In December 2012, construction rose 12% over the previous month and brought the total number of homes constructed and 2012 to the highest level since 2008. House flipping is likewise helping the economy by employing contractors, construction workers, and craftsmen while also adding to the numbers of housing materials purchased. In addition, house flipping is helping to bring up the overall housing market by improving the value of individual homes within neighborhoods. Essentially, rehabbing creates value that might not otherwise develop.
House Flippers are Typically Seeing a ROI of 25% or Greater
The current and steady rise in home construction and house flipping is largely due to the fact that most housing markets across the United States have reached their bottom level and are beginning to resurge. Homebuyers are feeling more confident about their job security and about the housing market in general, prompting more buyers to enter the market. Because very few homes were built over the last several years, there is currently a lack of availability, especially amongst midrange homes. While construction workers hurried to reach the current demands, house flippers are competing to purchase recently foreclosed homes and other ideal investment properties. In many cases house flippers are making returns on their investments in excess of 25% due to the current high demand.
If you’re interested in contributing to the housing market and making a profit of your own, consider speaking to a private money lender about the possibility of becoming a house flipper. With ZINC Financial on your team, you can obtain the residential rehab loans that you need in as little as 7 to 10 business days, giving you the buying power necessary to compete in today’s hot house flipping market.
Call us today at (559) 326-2509 to learn more about our rates and services, or use our free online Deal Analyzer tool to begin researching your house flipping options.