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.”