Palm Beach Property Flipping Becoming Widespread
Palm Beach Property Flipping Becoming Widespread
The process of flipping home purchases is quickly becoming a trend in Palm Beach, and this time, it’s benefitting the local housing market overall. In the past, home flipping in the Palm Beach area was prevalent, but it didn’t come with the advantages that today’s investors are bringing to the table. According to RealtyTrac, flipping activity has steadily increased in the South Florida Market, and Palm Beach County, Broward and Miami-Dade Counties are among the top metro areas nationwide that are experiencing the flipping trend. The study by RealtyTrac defined South Florida flippers as investors who buy homes and put them back on the market in less than six months.
Currently, flipped properties stay on the market just 105 days. This shows that there is a huge demand from buyers for additional Palm Beach real estate. In the past, flipped homes spend a longer time on the market, but they also didn’t feature as many upgrades as the recent listings. Investors are now taking the time to make valuable improvements to homes, which has also driven prices upward. Some flipped properties add value to other homes in the immediate vicinity since exterior improvements make neighborhoods more desirable in general.
Overwhelmingly, foreign investors are contributing to the increase in property flipping in the South Florida region. The opportunity for profit is remarkable, especially since there is still an inventory shortage that is not likely to be remedied in the near future. Buyers are scrambling to bid on properties as soon as they’re listed, and foreign buyers have the additional advantage of making bulk purchases in cash sales.
Property flipping can be a profitable venture. Nationwide, the profit per flip is approximately $29,000, excluding renovations and listing costs and sale fees. In South Florida, the profit is even greater. According to RealtyTrac data, the average gross profit for Miami-Date residential flips is an impressive $61,494, and investors gained an average of approximately $35,000 by flipping homes in Palm Beach County.
If you’d like to learn more about the Palm Beach housing market, or see a Palm Beach home on our Palm Beach Premier Real Estate website that you’d like to visit, please contact us right away! We’d love to help you find the perfect Palm Beach home to meet your needs.
[cc_author style="bumber-b" author="gia"]
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