Q2 Home Flipping Profits Decline in Nevada

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Flipped home sales in Flipped home sales in Nevada have decline in the second quarter of 2014 even as the area led the nation in terms of residential sales of this kind.

Real estate analytics company, RealtyTrac recently reported that 8.1 percent of total home sales in Nevada from April through June had been purchased and resold in s span of 12 months. this is just a few points below the national percentage which is 12.2 percent.

The percentage dropped from 9.1 percent from the same period last year.

“Home flipping is settling back into a more historically normal pattern after a flurry of flipping during the recent run-up in home prices in 2012 and 2013,” RealtyTrac vice president Daren Blomquist said. “Flippers no longer have the luxury of 20 to 30 percent annual price gains to pad their profits. As the market softens, successful flippers will need to focus on finding properties that they can buy at a discount and efficiently add value to.”

In addition, gross profits also slipped in Nevada as with the whole nation. Flippers only received 4.8 percent gross profit based on home purchases that averaged $195,649 and sales that averaged $204,952.

RealtyTrac furthered that this was the lowest profit margin among 30 states.

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