The average gain of a home that was flipped in 2013 was $90,200. “Flipping” is the process of buying a home at one price and re-selling it in the next 12 months. This figure is according to Redfin, a national real estate brokerage. Redfin says that in 11 of the 30 markets they analyzed, gains realized were over $100,000. These gains do not equate to “profit”. Home flippers typically repair and renovate these homes before selling them, thus their profit is less than the gain.
There were several markets where gains were over $15,000, including San Francisco, Long Island New York and San Jose CA. Some markets even came in between $200,000 and $300,000 avg. gain, including Washington DC, and Portland OR. Lesser gains came in markets such as Las Vegas, NV and Atlanta GA, where a typical flipped property gained $50,000-$53,000.
The actual number of homes flipped in 2013 was less than in 2012. Peak flips were in 2005 at 101,800, 75,000 in 2012 and 67,000 in 2013. This year the number is expected to decline to 58,500. Redfin has noted increasing flipping activity in Washington DC, Atlanta, Ft. Lauderdale, West Palm Beach and Philadelphia.