Flipping Cheap Property Listings Surged in San Francisco- By: John Cutts
The pace of flipping cheap property listings in the San Francisco Bay Area has made a resurgence in April.
Of the more than 7,000 Bay Area homes that were sold in April, 2.6 percent were units that were purchased by resellers about 3 to 6 months prior. The percentage marked an increase from 2.3 percent in the previous month and from 1.6 percent in April last year.
Flipping was most prevalent in Solano County, where 3.7 percent of total home sales were flipped. In San Francisco, the flipping rate was 1.4 percent.
Flipping surged despite the decline in the resale of San Francisco bank owned homes to 29.5 percent of all homes sold in April, down from 31 percent in March and from 46 percent in April last year. It was the lowest foreclosure percentage in two years and far below the peak percentage of 52 percent in February last year.
Despite the drop in sales of bank owned foreclosed houses, buyers still made investments in the Bay Area because of available cheap property listings. Investors and other absentee buyers bought 18.2 percent of all homes sold in April, up from 17 percent in the previous month and from 17.3 percent one year earlier. The percentage was also far above the 13-percent average absentee buying percentage over the past 10 years.
Buyers who paid in cash comprised 25.5 percent of total April sales while buyers who used FHA loans accounted for 25.6 percent of sales, down from 26 percent in April last year but up sharply from 14.4 percent in April 2008.
The median price for all types of homes sold in April was $370,000, down by 2.6 percent from the March median of $380,000, but up by 22 percent from the $304,000 median in April last year.
In April this year, the number of bank owned homes in California surged to 16,932 units, up by from 16,892 in March. With this still high number, buyers can easily find cheap property listings in the state.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.