Oakland County had the fourth highest rate in the nation for house flipping last year, as the rate of buying homes and selling them quickly for profit rose to 8 percent of all Metro Detroit single-family home sales in 2013.
That was more double the 2012 pace; on average, the seller netted about $29,000 profit, according to a report released today by RealtyTrac, an Irvine, Calif. firm that follows the housing industry. The average flipped house was purchased for about $76,000 and sold for $105,000. The $29,000 profit was nearly double the 2012 profit average, the report said.
“Overall, house flipping had a positive impact on the market because it took mainly distressed properties or undervalued properties and made them turn-key ready,” said Daren Blomquist, vice president of RealtyTrac in a telephone interview Wednesday.
“Strong home price appreciation in many markets boosted profits for flippers in 2013, despite a shrinking inventory of lower-priced foreclosure homes to purchase,” Blomquist said.
Metro Detroit was among the areas with big increases in home flipping between 2012 and 2013. Virginia Beach, Va., saw the highest increase, with 141 percent. Metro Detroit ranked seventh in the nation, with a 51 percent increase from 2012.
Of the total 6,152 houses in Metro Detroit flipped last year, nearly half of them were in Oakland County, and they accounted for 13.3 percent of all single-home sales in the county during 2013, according to RealtyTrac. Macomb County followed with 1,679 flips comprising 10.9 percent of all sales. Wayne County had the lowest ratio, with 592 flips accounting for 2.1 percent of all sales.
Flipping slowed considerably during the last six months of the year, likely because of the declining number of foreclosed properties and overall dwindling housing inventory in the region.
The Metro Detroit trend mirror national trends. Last year, the number of U.S. homes flipped accounted for 4.6 percent of all sales during the year, up from 4.2 percent in 2012 and up from 2.6 percent in 2011.
In December, the median sales price of homes in the four-county Metro Detroit area hit $120,800, a 40.9 percent improvement from $85,750 in December 2012, according to Farmington Hills-based RealComp II.
December also saw inventory drop to 13,340 homes and condominiums in Wayne, Oakland, Macomb and Livingston counties, a 10.5 percent dip compared with December 2012, according to the report. The low number of homes and condominiums on the market was a constant last year. It cut overall sales and in many neighborhoods, it sparked bidding wars among potential buyers.