Property flipping, which is basically buying a property and then reselling it immediately, or shortly thereafter, is occurring less frequently now in St Louis than it was, according to a report released today by RealtyTrac. According to the report, there were 289 houses flipped in the St Louis metro area during the 2nd quarter, down 44% from the first quarter and down 17% from the 2nd quarter of 2013. During the 2nd quarter of this year, 3.3% of all St Louis home sales were “flip” deals which, for the purpose of this report, were homes that were bought, then resold within a 12 month period.
The average gross profit on the properties flipped during the 2nd quarter of 2014 was $20,122, down significantly from the same period a year ago when the average gross profit was $36,858. Before you get too excited, I should point out, this is just the gross margin, the difference between the initial price paid and the resale price and does not take into account any repairs, improvements or other expenses related to that property or the transaction.
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