It seems that the pace of house flipping in Michigan’s largest markets is going faster.
You have heard this, but do you have any idea what house flipping is? Let’s give you a quick tour of understanding what house flipping is about.
House flipping is when someone buys a house, renovate it, and then tries to sell it for a profit. That’s to simply put it.
The ATTOM Data Solutions is a company that tracks the real estate market. Now the ATTOM Data Solutions’ Chief Product officer Todd Teta, said that Michigan’s relatively low house prices are very attractive to house flippers.
Teta noticed that the first 3 months in this year, 2019, there has been a rise in house flipping especially in the Detroit, Flint, and Grand Rapids areas.
Basing on the data gathered, he added that Michigan, relative to the rest of the states in the US, that there is a great opportunity in this state.
Furthermore, the ATTOM Data Solutions’ data further showed that 7.2% of these houses sold in the US in the first quarter of this year, 2019 were flipped houses. The overall house sales, house flipping seems to be at its highest in nearly a decade. However, according to Teta, the profit margins of house flippers are going down.
He added, “with interest rates dropping and home price increase starting to ease, investors may be getting out while the getting is good, before the market softens further.”
Now, if you hadn’t grabbed this opportunity yet, when are you going to? Don’t decide too late, or you might end up not getting this chance of taking a bigger piece of the pie.