Flipping Houses Not as Popular in Las Vegas At It Once Was
Flippers have slowed down their flipping in the Las Vegas area. Eleven years ago, the share of homes that were flipped or sold twice in a year, was at around 18 percent. In 2015, this number was around 9 percent, which is half what it was right after the housing market bust. These numbers are very important, simply because they can have an effect upon home values in the area. They can also crowd out buyers who are trying to purchase a home.
Flippers Not Flipping Out Over Las Vegas Offerings
The number of flips or homes sold twice within a period of a year has significantly decreased since the high of 17.6 percent in 2004. While there is still a high turnover among Las Vegas homeowners, flipping has stabilized at a level of around 9.8 percent average. This is still high, but the Southern Nevada market is very transient in nature, due to tourism’s ebbs and flows.
Still Seeing Profits From Flips
Profits are still strong even with the lower number of flips. An average of $39,000 in profit has been made per home in 2015. “Flippers are able to actually add value to the homes,” says Daren Blomquist, RealtyTrac’s Senior Vice President. “If you begin to see that narrowing, that would be a sign of a danger zone.” Too much flipping is not a good thing for any real estate market, as it causes home values to become unstable and can cause there to be a shortage of affordable homes for buyers to buy to live in.
Flipping may not be the big draw to the Las Vegas area as it once was, but there is still money to be made. The lower number of flips is actually better for the market, as it allows for those who are moving into the area to find a home at a price that is affordable.