The California Association of Realtors has posted new numbers for the month of May, and there is a lot of great news for house flippers. Pending home sales are on the rise, and a large portion of buyers are paying above asking price for their new homes. This continues to be a seller’s market as home prices go up and house flippers make excellent profits in the midrange and high-end housing markets.
According to the California Association of Realtors, pending home sales in California were up 12.1% year over year in May. This marked the sixth straight month of year-over-year gains in home sales and the fourth straight month of double-digit improvements. Statewide pending home sales fell a bit in May, partially due to the fact that there are a shortage of available homes that can be put on the market, particularly in popular areas like San Francisco.
The association also found that the number of distressed property sales went down in May. Distressed properties made up about 7.4% of sales in May compared to 8.2% in April. A year ago, distressed sales made up 11.2% of total sales.
Many house flippers, of course, make their bread and butter on distressed home sales. However, the decrease in distressed homes is a good sign for the housing market as a whole. Fewer distressed properties mean a stronger economy, better job security, and more people looking for new homes. While competition may be fierce among house flippers focused on distressed properties, ZINC Financial has had many clients make excellent ROI on mid-level and high-end properties.
In areas like San Francisco, San Jose, and Los Angeles in particular, there are excellent opportunities to invest in underpriced homes in up-and-coming areas. Granted, these homes do not have low price points to begin with, but opportunities to boost home values by upwards of $100,000 are drawing many experienced house flippers to these higher-end markets.
As the numbers indicate, home sales are continuing to be strong throughout the state of California, making now a great time to be flipping homes. Help ensure that your house flips are as profitable and efficient as possible by securing your fix and flip loans in advance. Here at ZINC Financial, we’re able to fund our house flipping loans in as little as seven to ten business days, and each of our loan programs is backed by our excellent reputation within the industry.
Learn more about the current California housing market and our available loan programs by calling ZINC Financial today at 559.326.2509.