Housing-News-Report-May-2017

HOUSINGNEWS REPORT

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according to ATTOM data. Ohio homes flipped in 2016 were purchased by the home flipper at an average 44 percent discount below estimated “after repair” market value, compared to an average 26 percent discount nationwide. “We have a lot of flipping going on here and it’s mostly been positive,” said Watercutter, adding that typically neither the home seller nor homebuyer have the

According to Watercutter, home flippers are simply taking advantage of creating like-new inventory of homes that are move-in and rent-ready in a market without many new homes being built. “New home construction almost completely stopped several years ago and it just recently started. There is a lack of new move-up inventory to buy,” he said, adding that some of the other good- condition inventory in Ohio is locked up because of the relatively high share of homeowners still underwater. “Some owners have not seen the value come back to where it needs to be where they can sell … and so they are still not able to sell due to those circumstances.”

resources and time to perform the type of rehab needed to get homes in condition to sell at or above full market value. The downside of flipping, Watercutter noted, is that it removes potential wealth from the original homeowner. “Really does take wealth out of people’s pockets. Takes it out of the pocket of the homeowner and puts it in the pocket of the flipper,” he said.

We have a lot of flipping going on here and it’s mostly been positive. … Really does take wealth out of people’s pockets. Takes it out of the pocket of the homeowner and puts it in the pocket of the flipper.”

Matthew Watercutter Broker of record and senior regional vice president, HER Realtors, Columbus, Ohio

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