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Interest in Flipping Houses Revived by Increase in Bargain Properties

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By : John Cutts    99 or more times read
The rise in the number of low-priced houses getting sold in the San Francisco Bay Area gave rise to some belief that flipping houses might make a comeback. Housing data for January 2011 showed that more people favored bargain-priced homes as sales of more expensive dwellings declined during the first month of the year.

Distressed houses for sale in San Francisco and other cheaper residential properties in the rest of the Bay Area accounted for a larger percentage of total home sales in January. Sales of houses priced above $1 million in areas like Contra Costa and Alameda declined from a year ago. Contra Costa County posted a 49% decrease in sales for houses priced above $1 million, while Alameda County recorded a 17% sales decrease in the same category in January 2011 compared with January 2010.

Realtors stated that aside from the larger percentage of housing sales accounted for by distressed homes in California, the decline might also be due to the strong sales recorded in December 2010. According to them, sales that would have been closed in January were completed instead in December, thereby causing January figures to be lower. December sales of homes priced over $1 million totaled 107 in the region.

Those who are into flipping houses probably joined the home buying market in January of this year as almost 5,000 houses were sold in the region during the month, representing a rise of 2.3% from January 2010. Statewide, over 27,700 new houses were sold in January 2011.

Realtors reported that distressed homes for sale and low-priced properties dominated residential sales in the Bay Area in January as the median price of houses declined in most local markets. In Alameda, the median rate was $308,181, representing a decline of 9.6% from January 2010. Contra Costa, on the other hand, posted a year-over-year decline of 6.7% as median price ended at $257,250 in January 2011.

According to area realtors, renewed interest in home purchasing is being shown by homebuyers and investors flipping houses. They added that more closings will happen in the coming months in the Bay Area as the economy improves and consumer confidence gets better.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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