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Gains on Home Flips Reach All-Time High

SEATTLE—According to a recent national Redfin report, flips saw an average increase of $102,400 from purchase to sale price. Neighborhoods in Washington, D.C. and Los Angeles among the hottest for flipping, says the firm.

By Natalie Dolce | nataliedolce | | Updated on March 16, 2016
The hottest neighborhoods for flips, based on average gains were Petworth in Washington, DC and Mount Washington and Silver Lake, both in Los Angeles. The hottest neighborhoods for flips, based on average gains were Petworth in Washington, DC and Mount Washington and Silver Lake, both in Los Angeles.
SEATTLE—Home flippers realized more gains on their flips in 2015 than ever before: $102,400 per flip on average, up from $98,500 in 2014 and far higher than the peak of $90,900 during the last housing boom. That is according to Redfin, which recently crunched the numbers all the way back to 2001 to see how flippers fared before and after the housing bust. Redfin also released a ranking of the country’s 10 hottest neighborhoods for flipping gains, led by Petworth in Washington, D.C and Mount Washington in Los Angeles. For its analysis, Redfin defined a flip as a home that was purchased and then sold again within 12 months for at least 10 percent more than the original purchase price. While big gains in home prices have created big opportunities for flippers in 2015, the firm reports that number of homes being flipped was relatively low. “We estimate 43,000 homes were flipped in 28 Redfin markets last year, nowhere near the volume of 2005, which was the peak year on record at 95,000 homes.” As for which markets and neighborhoods? The firm says that the hottest neighborhoods for flips, based on average gains were Petworth in Washington, DC and Mount Washington and Silver Lake, both in Los Angeles. Other highlights from the report include:
  • Rounding out the top-five hottest neighborhoods were Brookland in Washington, DC and North Sunnyvale in San Jose.
  • Among metros areas, San Francisco was the most lucrative flipping market in 2015, with an average gain of $216,000 per home, followed by San Jose at $174,800 and Long Island at $152,600.
  • The smallest flipping gains in 2015 were seen in Las Vegas, Atlanta and Raleigh-Durham.
  • When calculating the average gain compared to the original purchase price, flippers in Philadelphia, Chicago and Baltimore fared well. Gains in those cities were 73%, 70% and 67% higher than the original purchase price.

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