DETROIT (WWJ) – House flipping in the city of Detroit is hot, up 13 percent from the national average a year ago during the same third quarter period.
Reality Track has just released on a new report on “flipping houses” — the practice of buying a house in need of repair, making some fixes, then re-selling as soon as possible at a profit. Detroit, along with Los Angeles and New York, is experiencing a double-digit increase in house flipping.
Prudential Snyder realtor Sharon Snyder says it’s a good sign for Metro-Detroit, but area home prices have yet to return to their high mark.
“We’re not back to the prices as they were, say in 2006. We’re not back there yet, but in some areas we’re probably 75 percent there.”
The report also shows that real estate investors made an average gross profit of nearly $55,000 on single family home flips in the third quarter.
It’s not only the city that has seen improvement, Snyder said. Areas including western Wayne, Washtenaw, and Oakland Counties, along with Plymouth and Northville are on the upswing. The study shows the $700,000 and higher market benefiting the most.
Snyder encouraged anyone that is interested in house flipping to get involved while the market is growing.
“Interest rates are still at a historic low,” Snyder said. “With that alone, people should be thinking about investing.”