HOUSING NEWS REPORT
ATTOM DATA SOLUTIONS
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.“ 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 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.
THE PEOPLE WHO HAVE THE ADVANTAGE HEREARE THE ONES THATHAVE REHAB TEAMS INTHEIR BACK POCKETS OR CAN DO THE REPAIRS THEMSELVES.”
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. Among the states, North Carolina ranks ninth in total population with more than 10.1 million residents. Between the 2010 census and 2016 estimates by the U.S. Census Bureau the state’s population has grown by 6.41 percent, making it the 13th fastest growing state in the country. According to a February 2016 report from the University of North Carolina Chapel Hill’s Carolina Population Center, the state’s population is projected to jump another 20 percent by 2035 to more than 12 million people.
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)
Flipping Out in the Tar Heel State NORTH CAROLINA SPOTLIGHT BY ATTOM DATA SOLUTIONS.
by Joel Cone, ATTOM Data Solutions Staff Writer
orth Carolina sports fans had to be flipping out after their University
local sports team. People love to see their favorite team win. But for real estate investors, it’s not so great when looking for a good margin on the purchase side in order for an investment property to pencil out. Flipping — as an investment strategy — may indeed be out in North Carolina for the most part due to the lack of properties and increased competition around the state. Especially considering that increasing population numbers are directly affecting the supply and demand equation
and therefore ramping up the level of competition for properties on the market. 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
of North Carolina Tar Heels won the N.C.A.A. men’s basketball championship during this year’s March Madness. This is the team’s sixth national championship, and with this win they became only the fourth team in N.C.A.A. history to come back and win the national title just a year after losing the championship game. Flipping out is fine for the crazed fans of the Tar Heels, NASCAR, the Charlotte Hornets, Carolina Panthers or any other
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