Thereâ€™s a new trend on the national housing market that may even be impacting activity on the New Albany, Ohio real estate market.
Evidently, a recent Reuters article reported that more people are flipping luxury housing.
House flipping entails buying a home, refurbishing it, and selling it at a profit. In the past, this activity has mostly been relegated to the lower priced market but now, it looks like itâ€™s happening on the luxury home market as well.
New Albany Real Estate Trends
According to the recent article was reading, more investors are lending money to flippers on high-end properties.
The article told one manâ€™s story who purchased a California home in December 2012 for $1.5 million. The man invested $600,000 in renovations and now will list the property for $3.295 million.
This is not strictly a California phenomenon either.
According to national statistics, house flipping in the $1 million and up price range rose nearly 40 percent between 2011 and 2013.
Hereâ€™s what else the data reveal:
- Between 2011 and 2012, high-end flipping increased 456 percent in Phoenix (from 27 to 150 properties ); 867 percent in Orlando (from 3 to 29 homes); and 630 percent (from 10 to 73 homes) in Las Vegas.
To be considered a house flip, a home has to be bought and sold within six months.
Experts say that the improved economy is encouraging house flippers to enter the market once more.
Thatâ€™s because house flipping at such a high price range is more risky than the standard hour flip. Thus, these individuals are looking for more reasons to feel confident than the typical flipper.
Your New Albany Ohio REALTOR
It will be interesting to see just how much this luxury home flipping trend grows and what kind of impact, if any, Â it will have on New Albany.
After all, our community is well known for its luxury properties in such communities as:
Weâ€™ll be happy to assist you by offering you valuable home buying advice, telling you about available home listingsand providing you with such resources as:
Until next time,
Kate & Tony