House flipping spikes in Tampa Bay
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House flipping is hot again in Tampa Bay, new reports show.
Why it matters: Buying a fixer-upper is one way for wishful homeowners to squeak out a deal in hot housing markets like ours, if they can beat investors to it.
State of flip: Tampa was named one of the top U.S. cities for fixer-upper deals in a recent StorageCafe study, with potential average savings of $80,000 on sales.
- Savings were even higher in Miami, Orlando and Jacksonville.
Zoom in: Despite a national downturn, the trend had a recent spike in Tampa Bay, a recent report from real estate data company ATTOM shows.
- 11% of Tampa-St. Petersburg-Clearwater and Lakeland-Winter Haven home sales were flips in the last quarter of 2023. That's compared to the national average of 7.7%
- North Port-Sarasota-Bradenton was just under that, at 7.6%.
The big picture: In 2023, house flipping activity nationwide dropped by nearly a third, the biggest annual decline since 2008, per the report.
- Return on investment, at 27.5%, hasn't been this bad since 2007. The ROI was down from 35.7% in 2021.
What they're saying: "The biggest challenge for flippers in 2024 is acquiring new properties while housing stock/inventory is limited and there are few 'good deals' available that make sense from an investment perspective," Arvind Mohan, CEO of fix-and-flip lender Kiavi, told Housingwire.