By Cheryl Reid-Simons
With the real estate market finally warming up around the country, house flippers are going into hibernation. But in Hudson, home buyers may find they can still find an updated and renovated home, even if it hasn’t been “flipped.”
House flippers buy distressed homes, renovate them and put them back on the market for a tidy profit. Nationally the practice peaked in the last quarter of 2012, according to a recent report by Wall Street 24/7, and has fallen dramatically in the past year.
Not only do the flippers make money, they enable home buyers access to “turnkey” homes that they can purchase without having to finance both a mortgage and renovation budget.
With housing markets improving and fewer distressed homes on the market, the number of investors flipping has declined dramatically. There are still some regions where house flippers are thriving. The Wall Street 24/7 report cites San Jose, as the best city in the country to flip a home. House flippers there made an average of $166,000 gross profit, according to the report.
In Hudson, real estate agent Chris Davidson says a lot of homeowners who wanted to move during the housing downturn had to make another choice.
“A lot of the people that had negative equity were looking to renovate,” Davidson said. “We saw a lot of the renovation business pick up when people couldn’t sell their houses.”
Now, with the market returning many of those homes into positive equity territory, those homes are starting to come up for sale. Inventory remains tight, but what comes on the market is generally in good condition.
“When those houses hit the market, they are quality, nice houses that first time buyers would want,” Davidson said.
The housing turnaround has been faster in Hudson than in many parts of the country because of its reputation as a great place to live.
“I can tell you straight up that Hudson is one of the most desirable cities in the Cleveland suburbs,” Davidson said. “When the prices went down, people who could not afford (Hudson) now afford it, which is a good thing. People are moving up into suburbs they couldn’t have reached a few years ago, hence the turnarounds have been a lot quicker.”