WINSTON-SALEM, N.C. — Sales of flipped homes in the Winston-Salem metropolitan statistical area – those purchased and subsequently sold again within six months – remained stable in the first quarter, at 37, compared with a year ago, according to a RealtyTrac study released today.
The MSA consists of Davie, Forsyth, Stokes and Yadkin counties. RealtyTrac does not include Davidson County, which was grafted into the MSA in February 2013 by the federal government.
Those flipping the homes in the metro area lost on average $25,646 during the quarter.
Purchasers paid an average of $140,578, up from $96,030 a year ago. The average flipped price was $114,932, up from $92,125 a year ago.
The same number of homes involved means that average prices can vary widely, depending on the individual properties sold in a given quarter.
The Greensboro-High Point MSA had 43 homes flipped in the quarter. The average gross profit was $36,646. The average home purchase price was $74,268, up from $72,130 a year ago, while the average flipped price was $110,914, down from $129,827 a year ago.
The Charlotte-Gastonia-Concord MSA had 155 homes flipped. The average home purchase price was $155,075 and the average flipped price was $148,280. That meant those flipping the homes lost on average $6,795.
The Raleigh-Cary MSA had 62 homes flipped in the quarter. The average gross profit was $32,973, based on an average home purchase price was $195,511 and the average flipped price was $228,484.
“Slowing home-price appreciation early this year, in many of the most popular flipping markets, put some investors in danger of flying too close to the sun,” said Daren Blomquist, vice president at RealtyTrac.
“But investors appear to have recalibrated their flipping strategy, accounting for the slower appreciation even if that means fewer flips.
“This is another good sign that this housing recovery is behaving much more rationally than the last housing boom, which was built largely on unfounded speculation rather than fact-based calculations,” Blomquist said.