In California, 36% of home buyers plan to flip
The California Association of Realtors (CAR) has released its 2013 Investor Survey, which highlights the prominent role of investors in steering California's housing recovery over the past four years, many of which (27%) were foreign investors from countries like China, India and Mexico.
"Low mortgage rates, attractive home prices, and low yields on alternative assets have fueled demand for investment properties, particularly where distressed homes have dominated sales," according to the company.
This points to an overall trend of "buy and hold" versus flipping, with 64% of investors working with realtors planning on keeping their homes for a year or more. That said, a stark majority (approximately 75%) didn't plan on keeping their houses for more than six years. Thirty-six percent said they intended to flip the property within a year.
Of the properties in question, the overwhelming majority (78%) were single-family homes, with an overall median sales price of $272,500. Profit potential (34%) was cited as the number one reason for investors to have bought or sold recently.