Home flipping is back in Southern California, the Los Angeles Times reports, citing DataQuick stats showing 20 percent year-over-year price increases every month this year and home flips taking place at the rate of more than 1,000 per month for 11 consecutive months, up from less than 200 at times during the downturn. The Times found one real estate agent, Tarek El Moussa, who flipped 20 homes last year and hopes to do 50 this year. The question is not whether flipping is back, but whether it’s an indication of a healthy recovery or a warning sign. DataQuick’s Andrew LePage said if flipping rates shoot up from current levels, “I think that does become a warning sign.” Richard Green, director of the USC Lusk Center for Real Estate, says he’d be worried if people are buying with very low down payments. Source: latimes.com.
August 8, 2013