From the Record:
One in 25 home sales in New Jersey last year were investors’ flips — in which properties are bought, renovated and quickly resold — according to a company that tracks real estate deals.
Nationally, about one in 20 home sales were flips, according to RealtyTrac, a California-based real estate information company. A total of about 180,000 homes were flipped in 2015 nationwide, including about 3,800 in the Garden State.
Home-flipping activity rose slightly in 2015, but remains well below the levels seen during the housing boom about a decade ago, said RealtyTrac, which counts sales as flips if a home is sold twice within a 12-month period.
Last year, about 5.5 percent of sales were flips, up from 5.3 percent the previous year, but significantly below the peak of 8.2 percent in 2005, as the housing bubble inflated.
Last year, about 110,000 investors completed at least one home flip, the highest number since 2007, but less than half the 259,000 who flipped properties in 2005.
Home flippers made a gross profit averaging $89,000 in New Jersey and $55,000 nationwide, according to RealtyTrac. The gross profit doesn’t include the cost of renovations and transaction expenses, which can be substantial.