Home 'flipping' exceeds peaks in some hot U.S. housing markets
REUTERS
Edward Krudy March 3, 2016
NEW YORK (Reuters) - Home flipping - buying and reselling a home to
make a quick buck - has risen in some hot U.S. housing markets,
prompting concerns that local housing bubbles could be developing,
according to a report published on Thursday.
The report by RealtyTrac found that home flipping in 12 active
metropolitan areas last year was above a peak set in 2005, just two
years before the U.S. mortgage market started to collapse, leading to a
banking crisis and the Great Recession.
Profits generated by home flipping also hit a 10-year high, with home
flippers netting an average $55,000 per sale before renovation and
transaction costs. Profits topped $100,000 in expensive markets such as
New York and Los Angeles
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