Have you heard about Big Flippers? A recent Wall Street Journal article identifies a new breed of quick change artists on the real estate front – luxury home flippers. Popular before the housing meltdown, house flipping – where a property was bought, renovated and sold quickly for a profit – is seeing a comeback, albeit in the new arena of luxury homes. “Investors have actually run out of inventory on the low end of flips, and now they’re moving to the higher end”, says Daren Blomquist, Vice President of RealtyTrac. The million dollar homes represent an untapped market; however, flipping high-end homes can be challenging and risky. It isn’t for the faint-hearted because selling a luxury property can take longer than a mid-price home and renovation costs can be steep – high-end buyers expect to be wowed.
Where they are flipping: Homes that were purchased for $1 million or more last year and sold within six months:
- Miami-Fort Lauderdale-Pompano Beach – Fla.
- Seattle-Tacoma-Bellevue, Wash.
- Los Angeles-Long Beach-Santa Ana, Calif.
- San Francisco-Oakland-Fremont, Calif.
- Washington-Arlington-Alexandria, DC-VA-Md-W.VA
- Naples-Marco Island – Fla.
- Home resale inventories increased, with a 9 percent increase since June 2013.
- Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in June.
Price Trends – Sold vs. Listed
- Understand the difference between “listing prices” (what sellers are asking for) and “sold prices” (what buyers are willing to pay). By comparing these, you’ll have a good idea of where the market is heading. The median listing and sold property prices are calculated based on the market activity each month.
For more information on Estelia Mesimer and her team, and to learn more about the high-end homes she represents, visit www.estelia.com
You can reach Estelia at (727) 686-2859 and at firstname.lastname@example.org Her office is located in downtown St. Petersburg at 111 2nd Ave. NE, Suite 400.