“Home flipping was hot in 2016, fueled by low inventory of homes in sellable or rentable condition along with a flood of capital — both foreign and domestic — searching for the returns and stability available with U.S. real estate,” ATTOM senior vice president Daren Blomquist said. “The combination of more home flips and a greater share of financing for flip purchases resulted in a 19% jump in the estimated dollar volume of financing for home flip purchases, up to $12.2 billion for the flips completed in 2016 — a nine-year high.”
“Investors in search of flipping returns are increasingly willing to move to secondary and tertiary housing markets and neighborhoods with older, smaller properties that are available at a deeper discount,” Blomquist continued. “Given that many of these markets are more affordable, we are also seeing a higher share of the flipped homes sold to FHA buyers, with that share reaching a four-year high of 19.6% in 2016.”
“And it’s no wonder more investors are joining the home flipping market. The average home flipped sells at $189,900, a gross profit of $62,624. This is a 49.2% return on investment, an all new high for the report which dates back to 2000”
Source: HousingWire, 2016 Year-End U.S. Home Flipping Report by ATTOM Data Solutions
“Average home equity rose by $13,700 for U.S. homeowners during 2016,” said CoreLogic Chief Economist Frank Nothaft. “The equity build-up has been supported by home-price growth and paydown of principal.”
Number of Underwater Homeowners Decreases
Completed foreclosures decreased 40% in December, according to the December 2016 National Foreclosure Report released by CoreLogic, a property information, analytics and data-enabled solutions provider.
Completed foreclosure dropped from 36,000 in December 2015 to 21,000 in December 2016. And foreclosure inventory also dropped significantly by 30% annually, according to the report.
Let’s keep an eye on this trend between now & early 2017. There are some big changes on the horizon. Housing inventory is very low & lenders are working with borrowers to avoid foreclosures.
A group of non-lawyers allegedly scammed homeowners out of their money under the guise of several different law firms. After 37 complaints, they are being investigated, with a court order filed against them.
Source: Florida attorney general fights alleged foreclosure fraud firm | 2016-08-18 | HousingWire
You need to know who you are dealing with when you are investing or selling to investors. Impersonation of lawyers!