HOUSINGNEWS REPORT
SPOTLIGHT: NORTH CAROLINA
Bidding wars are back in vogue in just about every major market around the state, particularly at the low end of the pricing spectrum — the investor’s sweet spot — while higher-priced properties tend to sit on the market longer and with much less competition. “We only have a two months, inventory at the investor’s sweet spot,” says Realtor Rob Loschiavo, who lives and works in the Raleigh-Durham metro area. “If they’re looking to flip a property and going with
the standard 70 percent equation (70 percent of market value minus repairs) you can’t get a property for that. We also have first-time homebuyers. Different groups shopping for the same spots.“
5.8 percent from 2011. Seventy percent of all flips in the state were purchased with cash, at a median purchase price of $100,000, a 30.6 percent discount, and sold for a median $152,500, a 52.5 percent gross return on investment. “The people who have the advantage here are the ones that have rehab teams in their back pockets or can do the repairs themselves,” Loschiavo said. Population Growth Puts Pressure on Housing Stock The way the state’s population is growing, chances are that competition for existing and new housing stock is only going to intensify over time.
That is not to say that flipping properties is a total no go in North Carolina.
According to data released by ATTOM Data Solutions, flips accounted for 4.7 percent of all home sales statewide during 2016, up 3.3 percent from 2015, but down
The people who have the advantage here are the ones that have rehab teams in their back pockets or can do the repairs themselves.”
Among the states, North Carolina ranks ninth in total population with more than
Rob Loschiavo Wake County-based broker with The Virtual Realty Group
North Carolina Home Flipping Trend
Single Family Home and Condos Flipped
Home Flipping Rate (Pct of Total Sales)
9,000
8.0%
8,000
7.0%
7,000
6.0%
6,000
5.0%
5,000
4.0%
4,000
3.0%
3,000
2.0%
2,000
1.0%
10,000
0.0%
--
2000 2002 2004 2006 2008 2010 2012 2014 2016
ATTOM Data Solutions • P17
Made with FlippingBook Online newsletter