As the economy experiences a new surge with the rising stock prices, the wealthy are taking advantage of their improved spending power. This has caused an upswing in real estate purchases that has led to a seller’s market. That’s good news for people interested in flipping houses in the nation’s most desirable locations.
Few Options For Buyers
The number of available properties in prime markets is at a 10-year low, which means more buyers will be competing for fewer homes in the most luxurious communities. This has resulted in a surge in home prices by more than 53% in these markets. The sudden surge in the housing market has opened up new opportunities in house flipping. Instead of renovating a house that’s in poorer condition to sell it at a profit, anyone with the financial means can buy a luxury home and turn around to sell it for considerably more.
Renovations Are No Longer Necessary
The swift changes in the housing market means the average buyer doesn’t have to spend extra resources on updating a home before listing it. In the past, renovations had to be figured into the entire investment amount to account for all of the costs of flipping the property before a sale price could be determined. Since buyers can now list their homes without doing renovations, the profits they earn are much higher. For one hedge fund manager, a $4.15 million Miami Beach home earned him a $1.35 million profit when he sold it for $5.5 million without remodeling the property at all.
It’s Not Just Luxury Markets
Investors and average home buyers are finding similar opportunities in great locations all over the country. Anywhere property is highly valued, real estate owners are receiving favorable offers that allow them to earn high profits without putting in much labor in updating those properties. Near Boise, vacant plots of land are selling for more than double the cost that the initial buyers paid. These opportunities present great opportunities for people who are just getting started in real estate investing to earn great profits quickly.
If you’re intrigued in the idea of flipping houses as an investment opportunity, working with a real estate agent will help you get the best returns on your investments. They can help you choose the best markets to ensure your investment projects will perform well. Additionally, they know buyers in their markets, which will help you sell investment properties faster.