Nearly 40,000 people flipped their properties in the second quarter this year – the most since the second quarter of 2007, according to a recent report from ATTOM Data Solutions. The company analyzed public sales deeds of more than 950 counties, representing 80% of the U.S. population, on homes that were bought and then sold within a 12-month period.
Californians are hitting the high mark when it comes to home flipping recently. According to Realtor.com, California flippers made the most money, with those in Silicon Valley’s metro of San Jose, Los Angeles, San Francisco, and San Diego leading the charge. Expert analyst Daren Blomquist explains, “Home flipping is becoming more accessible for smaller operators thanks to an increasingly competitive lending environment with more loan options for real estate investors.” Preceding the 2007 housing market crash, flagrant home flipping was regarded as a red flag but today “a moderate number of folks buying up homes, rehabbing them, and selling them shortly afterward for a handsome return is a sign of a healthy housing market,” said Clare Trapasso of Realtor.com. With the padding of a robust market in place, there’s no crash landing in sight especially for flippers landing on California’s cushy turf.
If home flipping isn’t in your near future, you won’t be left on the sidelines! Those who choose to remain on the ground have many equity building options to take advantage of. Last week, CNBC reported a 2.9% boost in mortgage applications with the volume gains of 5% from the previous week. In fact, it looks like both the purchasing and refinancing market trends are spring loaded for the coming year. A launchpad into profitability, Ben Lane of Housingwire.com points to Fed Chair Janet Yellen, who suggests that “current rates could support the refi market through next year.” In the California arena, either way you spin it, the time to jump is now.
I have over 10 years of experience in the Southern California home lending market. Please feel free to reach out to me and we can discuss your home buying options together.