Pending home sales rose 3.4% in April to the highest level since May 2006. The home builder sentiment bounced back after dipping in March and housing starts jumped 20% in April from March. Home prices also rose more than expected in March; the S&P/Case-Shiller index gained 5% year-over-year in 20 cities.
Housing’s brightening outlook is welcome news, not just for homeowners but also for home flippers, said Nav Athwal, the CEO of Realty Shares, an online real estate investment marketplace. “Markets like Tampa, Miami, Jacksonville and Orlando present opportunities in terms of both available supply for flipping and also large returns…and we’ll see this trend continue,” said Athwal.
According to RealtyTrac, 4% of all single family home sales in this country in the first quarter were flips. Florida dominated the list for top markets for home flipping. But when it came to making a profit, flippers in the Baltimore area saw a whopping 94% return. “Markets like Baltimore have less supply, thus profit margins push up. Another similar market is Memphis, there’s not a lot of supply in the market, so the home flippers that successfully acquire the supply are better able to flip a profit better,” said Athwal.