Housing Market Making Major Strides – Flipping Encouraged

The housing market has been making significant strides across the country, with sales picking up in almost every major market and prices steadily rising on new and previously owned properties. Nowhere is this perhaps more true than in Orange County, where conditions are now rivaling their peak at the height of the housing market during the first half of the last decade.

According to DataQuick, a real estate research firm, new property values are up significantly year-over-year in June, with 28 percent improvements compared to the same period in 2012. In fact, every month this year, the company has posted average increases exceeding 20 percent compared to a year earlier.

As a result, there has been a major uptick in house flipping, a practice characterized by individuals purchasing homes – usually in desirable markets like Orange County – and renovating them to increase their market value, then selling the properties when conditions are prime and they can get the biggest return on their investment. Back in June 2005, 1,394 residences were flipped in Orange County – the highest number in recent history. However, following the burst of the housing bubble, this once lucrative enterprise virtually ceased to exist as a profitable practice, and home sales plummeted.

Now, DataQuick has posted the highest incidence of flipped properties since 2005, with 1,377 such homes resold in May – just short of the all-time high.

If you are interested in selling while the market is booming or purchasing one of these desirable flipped properties before prices get any higher, contact one of the Lifestyle Pros at Modtown Realty Group today.