Foreclosures Going Fast as Housing Flipping Makes a Comeback

By October 26, 2012Traditions Property Blog

Property sales are on the rise and Jacksonville foreclosures are back in the spotlight as house flipping makes a comeback in the Sunshine State.

For several years, house flipping was a huge trend in the housing market. As part of the house flipping practice, investors would purchase foreclosures and then fix them up so they could re-enter the market as a higher priced property sale. When the housing market took a hit, so did the house flipping practice. Some investors stayed in business by purchasing Jacksonville foreclosures and opening them up for rental property management, but others abandoned the practice altogether.

As of the second half of 2012 house flipping is making a big comeback, and this is a promising sign for the state of the housing market. As investors become more comfortable purchasing homes for the purpose of re-sale, homes in Jacksonville are spending less time sitting on the market.

Many experts felt that house flipping was a practice unique to the housing boom, and that it wouldn’t pick back up as soon as it had. With housing prices at the low price they currently are, many Florida foreclosures make for great investment properties for those who have the ability to act on them. Unfortunately, many people who would have otherwise been able to purchase investment properties were hesitant to act on foreclosures due to the inability to find a buyer for the renovated home. That is no longer the case, especially here in Jacksonville.

This year Jacksonville was named among the top 100 housing markets in the United States, and across the country homes are spending less time on the market before being sold. These trends have been encouraging to the house flipping business, and have encouraged many investment property owners to take part in the practice once again.

As of the first half of 2012, the average profit from flipping houses is just under $30,000. This is 25 percent higher than it was during the first half of 2011. With this level of profit at stake, many house flippers are deciding that their effort is worth the risk, and this is leading them to continue buying the foreclosures that are available.

You don’t need to be a house flipper to benefit from buying a foreclosure in Jacksonville. If you aren’t interested flipping a house at the moment, consider the benefits of investing in a foreclosure for rental opportunities. Rental property management in Jacksonville makes renting easier than ever.