U.S. Home 'Flipping' Up 114 Percent in Two Years

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The number of "flipped" homes in the U.S. increased by 16 percent in 2013, compared to the previous year and increased by a whopping 114 percent from 2011. 

A total of 156,862 homes were flipped -- purchased and sold again within six months -- in all of 2013, according to a report from RealtyTrac. 

Flipped homes accounted for 4.6 percent of all single-family homes sold in 2013, up from 4.2 percent in 2012 and increased from 2.6 percent in 2011.

Flipping homes is a form of investment for those looking to make a profit by quickly reselling a home, a popular move before the market crash. 

During the fourth quarter, flips represented 3.8 percent of all sales, down from 3.9 percent during the third quarter and lower than the 7.1 percent recorded in the fourth quarter of 2012 -- the highest percentage for a single quarter since RealtyTrac began tracking three years ago. 

Major U.S. metro areas with large increases in home flipping in 2013 compared to 2012 included Virginia Beach (up 141 percent), Jacksonville, Fla., (up 92 percent), Baltimore, Md. (up 88 percent), Atlanta (up 79 percent), Richmond, Va., (up 57 percent), Washington, D.C. (up 52 percent) and Detroit (up 51 percent), according to the report.

The average gross profit for a flipped home was $58,081 in 2013, up from an average of $45,759 in 2012. For the fourth quarter, the average profit was $62,761, up from $52,746 a year earlier. 

"Strong home price appreciation in many markets boosted profits for flippers in 2013 despite a shrinking inventory of lower-priced foreclosure homes to purchase," said Daren Blomquist, vice president of RealtyTrac. "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."

The report shows the biggest increases in flipping occurred for homes with a flipped price higher than $400,000, which increased 36 percent from 2012. Meanwhile, homes with a flipped price at or below $400,000 increased by 17 percent during the same time period. 

Although flipping increased nationwide, there were major markets with large decreases in 2013, including Philadelphia (down 43 percent), Phoenix (down 32 percent), Tampa (down 17 percent), Houston (down 17 percent), Denver (down 15 percent), Minneapolis (down 9 percent), and Sacramento (down 5 percent).