The June housing market numbers are in, and there is nothing but good news for house flipping investors. The Los Angeles Times recently shared great numbers out of real estate data firm CoreLogic. According to the firm, home sales in Southern California are up 18.1% this June compared to the same period a year prior. The median sale price is also up 5.7% to $442,000.
This increase in home sales is the largest in nearly three years. Home sales are still about 9.6% below the historical average, but the housing market has made significant improvements from last year, when home sales were 24% below average.
Numerous Reasons for Great Housing Market Conditions
The reasons why the housing market is doing so well are plentiful. There is still a lack of inventory in the Southern California housing market, and rent prices continue to go up. At the same time, the economy is steadily improving and people are feeling more confident about reentering the housing market.
Real estate experts agree that all of the numbers out of the Southern California housing market show steady, sustainable growth. All worries of another housing bubble have been quashed in recent months, which is great news for fix and flip investors.
In a stable housing market like we have now, there are very few foreclosed and dilapidated homes on the market. However, professional house flippers are making excellent profits on higher-end properties. Investors are using fix and flip loans to better leverage their available capital and invest in high-end properties in the up-and-coming neighborhoods of San Francisco, Los Angeles, San Diego, and San Jose, to name a few. These urban areas tend to attract Millennials who are looking for homes in trendy neighborhoods. Thus, by renovating underpriced homes in hot areas, house flippers are continuing to see gross profits well over $100,000 per flip in many areas of California.
Learn how you can leverage house flipping loans to take advantage of the current California housing market by contacting ZINC Financial today. Our team of experts can help you hone in on prime neighborhoods and ideal investment properties. Call 559.326.2509 today to learn more about our various loan programs and our exceptional reputation within the industry.