A housing trend is making a big comeback and it's going to make it a lot harder to you to buy an affordable home. House flippers are completely changing up the housing market.
It’s numbers not seen since before the recession. According to Trulia, an online real estate site, in 2016 6.1 percent of total home sales were due to house flipping. Tampa even coming in third nationally at around 8 percent.
Done responsibly, it can be a good thing for a community.
“Some of these neighborhoods were hit very hard in the downturn of the market and now you have people coming in there and making these houses beautiful again," said Melanie Atkinson a realtor with The Wood Team at Coldwell Banker.
Old homes, in need of repairs, are getting a facelift and then getting sold at a much higher price.
Atkinson is seeing more of this in the Seminole Heights area and while she says she’s not threatened by house flippers it does impact a realtor’s portfolio.
“Getting quality houses is even harder than it was before especially in that lower price point," she said.
Meaning, it’s also getting tougher for buyers, who can only afford lower-priced homes, to find one for sale.
Trulia also found that as home prices go up so too does the amount of house flipping. But for those looking to directly buy a flip Atkinson does have a warning.
“What might look good on the outside might need a lot of work on the inside," she said. "There are a lot of flippers out there that are not necessarily professional.”
This trend also alarming some who remember it as part of the craze right before the recession hit.
“Yes the prices are higher and it is a little worrisome when you look at it from that perspective but lending is so much more difficult now than it was before.”
Atkinson says, for that reason, she’s not worried about another housing bubble quite yet. She’s advises: do your research and always get an inspection.
