Charlotte: one of the hottest flipping markets in the U.S.
Over the course of 2018, property database firm Attom Data Solutions went about ranking all U.S. cities with more than 1 million residents. What exactly were they ranking? Attom was analyzing data pertaining to home flipping and they found that Charlotte ranked 7th out of all the nation’s top metro areas.
The numbers show that home flipping increased 10.3% over last year, and a whopping 23.9% over the last five years. Overall, flipped homes represent over 6% of total home sales. To put an exact number on it, in 2018, there were 2,805 homes flipped in the Charlotte-metro area.
To Flip or Not to Flip?
What constitutes a “flipped” home? Visions of popular shows on HGTV and DIY Network would indicate that flipping means swooping in on a cheap home, making some cosmetic changes, and selling it for a huge profit. This is not always the case. True flippers see the potential in a property and neighborhood and work really hard to not only better the home for years to come, but to, in turn, increase property values all around it. When done properly and thoroughly, flipping a home benefits an entire community.
And increase they do! Attom’s study revealed that, in 2018, the median pre-flip purchase price of these homes was $130,000. After the work is completed, they discovered that the median sales price of a flipped home was $180,000. Strictly by the numbers, that $50,000 gross profit represents a nearly 40% return on investment.
As Charlotte continues to grow, it’s no surprise that investors and individuals see a city filled with opportunity. While overall, flipping homes fell to a 7-year low in 2018, it’s interesting that it continues to increase in the Queen City.
Sound off in the comments below… if you were going to flip a home, which up-and-coming Charlotte neighborhood would you pick?