Once again, the Miami housing market proves a haven for flippers
Miami is one of the nation’s top housing markets for home flipping activity, according to Trulia’s “Big Flippers and High Rollers” report.
Trulia’s report measured home flipping activity through 2015’s third quarter, and Florida’s housing markets, in general, have been experiencing the highest flipping activity. Of the top 10 housing markets with the largest increase of flips, Florida occupies six of the spots, with Daytona Beach, Jacksonville, Orlando, Tampa and Cape Coral following behind Miami.
In Miami, home flipping increased 1.7 percentage points in the past year. In addition, Trulia reported that of the Magic City’s home sales in 2015’s third quarter, 6.4 percent were flips. While those numbers show substantial growth in house flipping activity in the past couple of years, Miami is at less than a third of its peak flipping point of 20.5 percent.
To reach their findings, Trulia differentiated between two different types of property flips: a “traditional flip” and a “clearance flip.” A traditional flip is the purchase of a house at market rate, and selling it at a higher market rate price; a clearance flip, by contrast, is the purchase of a distressed house at a discount because of a forced sale. To focus more on the relationship between prices and flipping, Trulia does not include clearance flips in their measure of flipping.
Take a look at the full top 10 list of the nation’s top U.S. metro areas with the highest flipping activity:
| U.S. Metro | Percentage Point Change in Flips 2014Q3- 2015Q3 | Flips 2015 Q3 | Peak Flips |
|---|---|---|---|
| Miami, FL | 1.7 | 6.4% | 20.5% |
| Las Vegas, NV | 1.4 | 10.4% | 13.1% |
| Daytona Beach, FL | 1.4 | 7.3% | 13.6% |
| Jacksonville, FL | 1.4 | 6.0% | 17.5% |
| Orlando, FL | 1.3 | 6.3% | 15.4% |
| Winston-Salem, NC | 1.3 | 6.5% | 11.2% |
| Tampa, FL | 1.2 | 6.6% | 14.5% |
| Raleigh, NC | 0.9 | 4.5% | 7.5% |
| Birmingham, AL | 0.8 | 5.2% | 5.6% |
| Cape Coral, FL | 0.8 | 6.6% | 15.3% |