LAS VEGAS -- Nevada remains one of the most popular states for flipping homes based on 2013 data released Wednesday night by RealtyTrac.
The real estate analytics company from Irvine, Calif., which defines flipping as the purchase and subsequent resale of a home within six months, reported that 7.5 percent of all Nevada housing sales last year met that definition.
Only six states -- Nebraska, New Jersey, New York, Virginia, West Virginia and Wisconsin -- had a higher percentage of sales from flipped homes than did Nevada.
For the 3,680 flipped homes sold in Nevada last year the average gross profit was $43,506. The number of flipped homes statewide also represented an increase from 2012 (3,421 flips) and 2011 (3,148 flips).
Flipping activity in Nevada was particularly robust in the fourth quarter of 2013, where flips represented 8.3 percent of all home sales. Only three states -- Nebraska, New York and Wisconsin -- registered higher percentages of flipping activity that quarter.
The average flipped home in Nevada in the fourth quarter sold for $194,200, resulting in an average gross profit of $50,335 for the seller. That represented considerable improvement for sellers from the $34,885 in gross profits they averaged from flipped homes in the fourth quarter of 2012.
"Strong home price appreciation in many markets boosted profits for flippers in 2013 despite a shrinking inventory of lower-priced foreclosure homes to purchase," RealtyTrac vice president Daren Blomquist said. "For the year 21 percent of all properties flipped were purchased out of foreclosure, but that is down from 27 percent in 2012 and 32 percent in 2011.
"Meanwhile flipped homes were still purchased at an average discount of 13 percent below market value in 2013, the same average discount as 2012, indicating that investors are finding discounted buying opportunities outside of the public foreclosure process — particularly in those markets with the biggest increases in flipping for the year."