A new study finds the practice known as house-flipping is down in California.
“Flipping” is what the real estate industry calls it when you buy a home and then sell it again with a 12-month period.
“Indicating someone who’s buying the property, presumably fixing it up and then selling it for a profit," says Daren Blomquist with RealtyTrac.
The research firm’s latest data show about 5,500 California properties were flipped during the fourth quarter of last year. Blomquist says that was a little more than 7.5 percent of all single-family home sales.
“But that percentage was down 21 percent from a year ago, that share of flips," says Blomquist. "So it is coming down fairly dramatically.”
The data show that on average, flippers saw a $96,000 profit – or the difference between the purchase price and the flipped price.
Blomquist says as home price appreciation slows to single digits, flippers are being more selective about the properties they buy.