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The typical flipped home in the Lake Charles area sold for double the price the investor initially paid for it, data show.
The Lake Charles area was again the best market for flipping a home in Louisiana and was the third-best among over 200 MSAs in the U.S. while the national market for flipping homes declined, according to data from ATTOM, a national curator of land, property, and real estate data, in its 2023 U.S. Home Flipping Report
The typical gross return on investment for a flipped home there was 107.8%, data shows, with the median purchase price of $80,000 with a median resale price of $166,256. The numbers are down from 2022 when the typical gross ROI was at 122.5%.
There were 121 homes flipped for the year, marking 6.3% of all homes sold in the region, which was down 4.4% from 2022.
In the Lafayette area, the 246 flipped homes had a typical gross return of 58.3%, which was up slightly from the 42.7% in 2022, data shows. Of all homes sold in the year, flipped homes accounted for 6.9% of them, which was up 9% from 2022.
Activity slowed in 2023 across the country, with the total single-family homes and condos flipped down 29.3% from a year ago, the largest drop since 2008, ATTOM reported. The typical ROI on a home was at 27.5%, down from 28.1% from 2022 and 35.1% in 2021 and the lowest level since 2007.
Investors saw their profit margins decrease for the sixth time in the past seven years as the median price for flipped homes dipped slightly faster (4.4%) than the median price they had paid to purchase properties (4%).
“In 2023, the landscape for home flipping across the U.S. became increasingly challenging,” ATTOM CEO Rob Barber said. “Whether the overall market has soared or seen just modest gains in recent years, investors have missed out on the action.”
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This article was originally published by a www.theadvocate.com . Read the Original article here. .