Courtesy of Brent Rasmussen of Mortgage Specialists, LLC.
Home flipping in the first quarter of this year jumped to the highest level since 2006
Investors rushed to snatch up properties to resell for a profit. Home flipping comprised 7.5% of all home sales during the first quarter, up from 7.3% a year prior, ATTOM Data Solutions reports in its 2020 Home Flipping Report. It defines a house flip as a purchase and sale within 12 months.
The gross profit on a typical property flipped nationwide (the difference between the median sales price and the median paid by investors) rose in the first quarter to $62,300. However, due to rising home prices, that profit for investors equated to about 36.7% return on investment compared to the original purchase price, which is down from 40.9% a year earlier.
The National Association of REALTORS® identified the top 10 markets with excellent opportunities for Millennial homebuyers; the current report analyzed current housing affordability conditions, the presence of Millennials in the area, local job market conditions during COVID-19 pandemic conditions, and inventory availability in the largest 100 metropolitan statistical areas across the country.The top 10 markets were chosen for their above-average scores in these criteria, and the Omaha- Council Bluffs market was one of those.
U.S. home prices gains accelerated in April even as sales have stumbled, a sign the coronavirus outbreak has had little impact on real estate values. The S&P CoreLogic Case-Shiller 20-city home price index climbed 4% in April compared with a year earlier, the largest gain since December 2018, up from 3.9% in March.
Home sales have fallen sharply for three straight months to their lowest annual pace in nearly a decade in May. Yet the supply of available houses for sale has also declined, compared with a year ago, forcing remaining buyers to bid up prices. Read more hear from Foxbusiness.com
Pending home sales reached a 44.3 percent monthly increase in May—a new record, according to the National Association of REALTORS® (NAR).
After two previous months of declines, pending home sales are showing a market rebound, with every major region recording a month-over-month increase. According to NAR, the Pending Home Sales Index (PHSI) increased to 99.6 in May—the highest MoM growth since NAR began the series in January 2001. Since the same time last year, pending home sales have fallen 5.1 percent.
NAR expects existing home sales to reach 4.93 million units in 2020, with new home salespotentially hitting 690,000. In addition, in 2021, NAR expects sales to rise to 5.35 million units for existing homes and 800,000 for new homes.