As home prices begin to level out again, the real estate market is seeing a decline in the number of houses getting flipped for a profit.
“Flippers no longer have the luxury of 20 to 30 percent annual price gains to pad their profits,” said Daren Blomquist, vice president of RealtyTrac. “As the market softens, successful flippers will need to focus on finding properties that they can buy at a discount and efficiently add value to.”
In the second quarter of 2014, only 4.6 percent of all single-family home sales in the U.S. were flips. That number is down from 5.9 percent in the previous quarter.
Image via flickr/Mark Moz
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