House flipping is in retreat in Florida.
Yes, flipping still happens. And a new report shows the practice of selling a property weeks after obtaining it — a hallmark of the last housing bubble — is becoming less prevalent across the country. The number of homes sold six months after purchase dropped 35 percent nationwide between the second and third quarter this year, according to the report RealtyTrac in Irvine, Calif.
In Florida, the drop was sharper: down 40 percent, to 3,769 flips in the third quarter. One of the reasons for the drop: a healing real estate market has made it harder to find real estate prices low enough to bring a quick profit.
“Increasing home prices over the past 18 months combined with decreasing foreclosures have created a market less favorable to the high quantity of middle- to low-end bread-and-butter flips that we saw late last year and early this year,” said Daren Blomquist, vice president at RealtyTrac
Interestingly, only one Florida city made RealtyTrac’s list of the 10 hottest flipping markets. Los Angeles took the No. 1 spot, followed by New York, Las Vegas, Chicago, and Seattle. The lone Florida spot went to Daytona, at No. 9.