The percentage of homes and condos that were flipped in the third quarter declined, according to housing data tracker RealtyTrac, when compared to the second quarter.
RealtyTrac’s Q3 2015 U.S. Home Flipping Report shows that more than 43,000 single-family homes and condos were flipped — sold as part of an arms-length sale for the second time within a 12-month period — in the third quarter of 2015. The number equals to 5% of all single family home and condo sales during the quarter, which is down 7% from a 5.4% share in the second quarter, but up 18 percent from a 4.3 percent share in the third quarter of 2014.
“After curtailing flipping activity last year due to slowing home price appreciation and shrinking inventory of flip-worthy homes, real estate investors have started to jump back on the flipping bandwagon in 2015,” said Daren Blomquist, vice president at RealtyTrac. “On the acquisition side, investors are finding creative ways to pinpoint potential flips in the off-market arena, and on the disposition side investors have a bigger pool of potential buyers thanks to a surge in FHA buyers this year, many of them first-time buyers looking for starter homes.”