Like 2012, 2013 has been an excellent year for house flipping and for the housing market in general. The economy’s recovery has been markedly slow over all, but that hasn’t been the case in the housing industry during 2013. Around the country markets are bouncing back from their low points to post ever-higher numbers. California is doing particularly well with four of the five best markets for house flippers, according to USA Today.
Throughout the state, home prices have risen by double-digit percentages each month in year-over-year growth. Sales have slowed down in the fall, but this has been a predictable part of the housing cycle, and the slow-down has actually come as a positive sign to most housing experts. Reports circulated for months that California was on track for another housing market collapse because prices had been going up so quickly and so dramatically around the state, but this recent decline shows that the market is stabilizing, the LA Times reports. Many real estate experts from predict that home prices will continue to go up steadily in 2014 as fewer people in California go into foreclosure.
According to USA Today, home flipping declined in 2013 compared to 2012 when over 67,000 homes were flipped. However, the same article notes that in the top house flipping markets in 2013, the average gross profit per flip was over $100,000 in eight of the ten markets.
Property Investing Upswing Expected to Continue in 2014
Clearly house flipping is still a lucrative investment in 2013, and the trend looks to continue in 2014, though investors will need to take more care in selecting their properties as starting prices will go up and the number of distressed properties on the market will go down.
At ZINC, we’re encouraging our clients to take advantage of the current housing climate with our discounted holiday loan rates. Between now and December 30, 2013, new clients can book investor rehab loans at a .50% lower interest rate than usual. Clients who have taken out loans with us between January 1 and October 31 of this year can get an even lower rate of 1.4% off. Returning clients who have taken out loans with us in years past can also take out a new loan for .50% off.
If you’d like to learn more about our holiday promotional rates and start 2014 off on the right foot, contact Amber Castro, VP of Business Development, by calling (559) 326-2509 or by sending an email to Amber.C@ZINCFinancial.net.