Home flippers who pounced on recent drops in home prices now face some major hurdles — and potentially major losses.
It’s a story few could have foreseen: After home-flipping reached record heights as 2022 kicked off, the bubble seems to have burst. The one-in-10 home flipping/conventional sales ratio has dropped as the overall real estate market hits the brakes.
Home sales fell for the ninth month in a row in October, and dipped an astounding 28.4% from October 2021, according to the National Association of Realtors. It’s now causing many property investors to dump their inventory, and fast.
“Anybody that’s flipping right now needs to be looking closely at pricing of property: Price it to sell. Today is not the time to get greedy,” Noah Brocious, president of Capital Fund I, a hard-money lender that does business in Phoenix, Colorado and Texas, told Bloomberg News in October.
It’s true that elsewhere — in the stock market, for example — low prices and selloffs reveal golden opportunities to buy. But for those eagerly eyeing the housing market, it’s time to think again.
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