Orlando tops market for house flipping

RealtyTrac recently named Orlando as the No. 1 market in the U.S. for flipping homes. Spring is in full bloom and it would appear love is in the air for investors hoping to make a killing in the Orlando real estate market. Daren Blomquist, RealtyTrac vice president, stated May 1 that the average price investors were paying for homes in Orlando was $103,701, and the resale price when sold within six months or less averaged $168,677, a profit of just under $65,000. The website went on to note that nearly 2,000 homes had been “flipped” in the Orlando area in 2012.

Investors typically purchase a home that needs some work with cash, remodel it, and then resell it for profit. Many large investment groups hire their own teams of contractors and buy supplies in bulk to cut down on the overhead. Once the home is brought up to lenders’ standards, given curb appeal and some interior flair, it is resold. With the available inventory down from 8,666 last March to the current supply of 6,937, there are fewer homes to choose from. Buyers however, are not discouraged by this fact. National Association of Realtors chief economist Lawrence Yun specifically pointed out in the March Pending Home Sales Index that the growth of the housing sector is not limited by demand, but supply. Pending contracts are up nationwide 1.5 percent from February and predicted to increase 7 percent over 2012, and the investors are taking note. Homes are not only selling for more now, they’re selling faster too. The average number of days a home is on the market in Orlando is down from 97 to 80 year-over-year.

The news is fabulous for both buyers and sellers. Many owners previously under water may no longer be upside down, and sellers that are not distressed can count on selling their homes faster and for more money. Multiple offers on homes are commonplace in today’s market so sellers don’t have settle. While interest rates climbed slightly this week they remain in the 3 percent range, so even if a buyer pays a few thousand more, their payments are still affordable. Anyone looking for a reason to invest in the Orlando real estate market has plenty to choose from, and local homeowners are reaping the rewards.