In a blog post, RealtyTrac VP Daren Blomquist analyzed nationwide data on home flipping over the last 12 months. He found that although total flipping was down in the first quarter of 2014 compared to a year ago, flippers are making bigger profits per flip. The average gross profit per flip in the first quarter of 2014 saw a 30 percent return on the initial purchase price, while gross profits increased year-over-year for a 28 percent return on investment. However, the total volume of flipped properties has declined from the previous year.
Blomquist noted that 3.7 percent of all single-family homes sold this year were flips, compared to a 6.5 percent share of sales a year ago. The company said one of the most important factors in a successful and profitable home flip is how much work will need to be performed on the house in order to resell it at a higher margin. The top counties by gross return on investment in Q1 2014 include Prince George's County, Maryland; York County, Pennsylvania; Baltimore, Maryland; Campbell County, Kentucky; and New Castle County, Delaware.
In its latest Beige Book, the Federal Reserve noted economic activity has expanded in recent months, with the pace of growth characterized as moderate in the Boston, New York, Richmond, Chicago, Minneapolis, Dallas, and San Francisco Districts, yet modest in the remaining regions. Wednesday's summary reinforces comments by Fed Chair Janet Yellen in which she forecast a faster pace of expansion as financial conditions remain supportive of growth in economic activity and employment.