Overall, the recent data (from Attom Data Solutions) shows that home and condo flipping sales are close to what they were in 2006, although about two-thirds of all flips are cash transactions this time around whereas only about one-third were cash during the last trend.
While Gulf Coast cities led the nation in the second quarter for homes purchased and then re-sold within 12 months of the original purchase, SW Florida is not included in the list. In fact, while the average time for a house to be on the market is 185 days, Naples homes took an average of 222 days to sell, and the number of properties flipped in SW Florida is on the decline..
Counter to national trends, the number of properties flipped in Southwest Florida, as well as the returns to investors, is on the decline, a new report says.
- In Collier County, 153 single-family homes and condos were flipped during the quarter, down 11.2 percent from the same quarter a year earlier.
- The median price of a flipped home in the second quarter in Collier was $310,000, and the gross profit to investors was $75,000. However, due to purchasing and renovation costs, the gross return fell 7% to 31.9 percent from 34.4 percent a year earlier.
- In Lee County, 385 homes were flipped during the quarter, a decline of 17 percent over the year. Flippers sold homes in Lee for a median of $175,000, for a gross profit of $47,000. But the gross return on investment over the year in Lee dropped 19 percent — to 36.7 percent from 45.4 percent.