The real estate research firm Attom Data Solutions reported that the Winston-Salem metropolitan area recorded a 6% increase in homes purchased with the intent to flip in the third quarter of 2020. The metropolitan area includes Davidson, Davie, Forsyth, Stokes, and Yadkin counties.
Sales of flipped homes, defined as properties bought and resold within 12 months, increased to 186 units in Q3 of 2020, a 3.3% increase from the previous year. Flipped home sales accounted for 6.9% of all home purchases in this quarter. Additionally, the average purchase price was $91,750 while the resale price averaged out at $160,000. That represents a profit of $68,250 on average, up from $61,000 a year ago.
Around 32% of home flippers used borrowed money. Mortgages backed by the Federal Housing Administration accounted for 9.1% of residential property loans originated in the third quarter, up from 8.3% a year ago.
These numbers paint a positive picture for the home flipping business that reflects the unusual effects the pandemic has had on the housing market. While this uptrend is not guaranteed, it is a good idea to consider taking advantage of home flipping opportunities now.
To learn more about this real estate trend in Winston-Salem, click here.
Are you interested in purchasing a home or refinancing your current home in Winston Salem or the surrounding areas? Call The Sharpe Mortgage Team today so we can discuss your financial goals and find a loan program that is right for you.