LAS VEGAS -- RealtyTrac reported Wednesday night that the practice of selling homes within six months of their last purchase, known as flipping, continues to be popular in Las Vegas.
The real estate analytics company from Irvine, Calif., reported that 6.7 percent of all housing sales in Las Vegas in the first quarter of 2014 involved flipped homes. That was the fourth highest percentage among metro areas with at least 1 million residents and 25 flipped homes in the quarter.
But as a share of all housing sales, flipping in Las Vegas was down 9 percent from the first quarter of 2013.
That trend also was experienced nationally, where flipping made up 3.7 percent of all single-family housing sales in the first three months of 2014, down from 6.5 percent a year ago.
Flippers in Nevada collected average gross profits of $39,073 per flipped home in the first quarter of this year based on an average sales price of $192,908.
“Slowing home price appreciation early this year in many of the most popular flipping markets put some investors in danger of flying too close to the sun,” RealtyTrac vice president Daren Blomquist said. “But investors appear to have recalibrated their flipping strategy, accounting for the slower home price appreciation even if that means fewer flips.
“This is another good sign that this housing recovery is behaving much more rationally than the last housing boom, which was built largely on unfounded speculation rather than fact-based calculations.”