Fresno Bee Newsroom Blog

Real Estate: Investors make money flipping homes in Fresno

Real estate investors flipped more homes in the Fresno metropolitan area in the third quarter of this year compared to last year and made a sizable profit, according to a report released Thursday.

Investors bought, renovated and sold 182 homes in Fresno during the third quarter, a 47% increase from 124 properties at the same time last year, the quarterly home flipping report said.

RealtyTrac, an online housing data company, compiled the report showing a 13% drop nationally in home flipping, but an increase in the average gross profit of each home sold.

In Fresno, the average purchase price of a house was $141,908. Investors then renovated and sold the home for an average of $192,585 — a profit of $52,704, or 36%. That’s quite a jump from last year when investors made a profit of $29,977.

Nationally, home flips were down 13%. Investors made an average profit of $54,927 off each home — a 12% increase from last year.

As the inventory of cheap homes falls, investors are being driven to more high-end homes, which sell for $750,000 or more, allowing them to make a bigger profit, RealtyTrac said.

“Increasing home prices over the past 18 months combined with decreasing foreclosures have created a market less favorable to the high quantity of middle- to low-end bread-and-butter flips,” said Daren Blomquist, RealtyTrac’s vice president.

“But the sharp rise in high-end flipping indicates there is still good money to be made for flippers willing and able to take on the additional risk of buying and rehabbing more expensive homes.”

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