Profits Rise Despite Fewer Flipped Homes

FRESNO, Calif. (KMJ) — 30,000, or 4.5% of all single-family homes sales in the second quarter of 2015, were those that had been flipped.

That’s a decline of 1% from earlier in the year, and down from the peak of 8% of such sales, seen in 2006.

However, the average gross profit rose to nearly $71,000, a noticeable increase from the previous year.

But according to real estate information company RealtyTrac, home flippers should proceed with caution in the coming months, as price appreciation is expected to slow, and a possible interest rate hike, could shrink the pool of prospective buyers.