Americans Are Flipping Houses In Miami

Antonio Cuellar Pexels

The concept of home flipping is simple. Buy a house for $1, and sell it for $1.20 as fast as possible. With any luck the higher price will come with rising home prices and nothing more. With less luck, the buyer has to make an investment–either repairs or upgrades. 

A new study shows that Miami is  among the most popular cities for people to flip homes.

*Miami Real Estate Realities

*Low Repair Costs In The Area

*The Population Tops 450,000

This study looked at home prices, inventory levels, market activity, price per square foot, pending listings, and buyer demand. The information was sourced from Realtor.com Economic Research. These were weighted to create a score across 50 metros.

Miami ranked 8th on the list with a score of 34.5. New York City was first with a score of 41.18. The study’s authors wrote, “Even though its median listing price dropped slightly by 0.12%, Miami, FL, remains a competitive market for house flippers. With over 41,500 active listings and a pending ratio of 0.22, Miami shows no signs of slowing down.”

Dodging Hurricanes

Flipping in Miami and other climate challenged cities like Houston and Tampa has become more complex. Rapid changes in the dangerous climate have driven home prices down sharply. At the same time, the price of insuring homes has jumped. And, without insurance many potential buyers cannot get home loans.

Flipping in Miami is probably like catching a falling knife at the one brief point when the plunge has slowed. It is now the off-season for hurricanes. The hurricane season runs from June 1 to November 30. Flippers have had a chance to purchase homes, the value of which likely dropped when Hurricanes Helene and Milton hit the far side of the state and sent tornadoes in the direction of Miami as part of the process. The gamble is that these prices may rise before the next series of storms. It is a risky gamble.

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