News Column

Newport News carries region in Q2 2014 home flipping profits

August 23, 2014

By J. Elias O'Neal, Daily Press (Newport News, Va.)



Aug. 23--NEWPORT NEWS -- Investors and risk takers may be growing bullish on Newport News' realty market, according to a recent report.

RealtyTrac, a California-based firm that tracks residential realty trends across the country, found many flippers are getting the greatest bang for their buck in Newport News -- with many pocketing on average more than $98,500 during the second quarter of 2014 for their investment, according to the report.

That's a 124 percent leap over second quarter 2013 results, the report said.

Overall, Hampton Roads ranked fourth in the nation for markets with the best home flipping returns, according to the report, with investors receiving up to 66 percent average gross returns on their investment.

Pittsburgh was tops in the nation with a 106 percent average return on investment, the report said, followed by New Orleans and Baltimore. Metro Richmond ranked seventh nationally.

Since realty firms are not required to record all of their transactions quarterly, the RealtyTrac report does not reflect all of the area's transactions; however, it does pinpoint parts of the region that are seeing increased residential sales activity, along with what types of property have been sold.

In Newport News, 27 homes were reported as sold flipped homes during the second quarter of 2014 -- meaning the residence was purchased and received some type of remodeling overhaul before being returned to the market and sold at a higher price.

Second to Newport News was Virginia Beach -- were 84 properties in the Commonwealth's largest city were sold for an average return on investment of more than $96,700, a 59 percent spike over second quarter 2013 results, the report said.

James City County recorded 16 home flip sales, according to the report. Poquoson recorded three flip sales last quarter, while York County posted one. Because of incomplete comparative data from the first and second quarters of 2013 and 2014, the report does not include the return on investment for the localities.

No home flipping data was available for the cities of Hampton and Williamsburg.

On average, the report found that flips completed in the second quarter of 2014 took an average of 187 days to complete -- up from an average of 164 days in the previous quarter and up from an average of 135 days for flips completed in the second quarter of 2013.

O'Neal can be reached by phone at 757-247-4744.

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(c)2014 the Daily Press (Newport News, Va.)

Visit the Daily Press (Newport News, Va.) at www.dailypress.com

Distributed by MCT Information Services


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Source: Daily Press (Newport News, VA)


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