The Flippers are Now Flopping…
Filed Under Real Estate General · Tagged: financial post, Flip that house, Flipping Houses, HGTV, The Big Flip, TLC
There is a great article in the Financial Post that was talking how quick turnover, flipping, isn’t as easy as it appears.
Did you know that between 2002 and 2007, Canadian home prices soared 78% from $177,100 to $315,800. If you are planning on flipping in this market, YOU WILL LOOK LIKE A HERO… But not so much anymore… As the market is softening and correcting itself, flipping is one of the hardest, if not THE hardest way to make money in Real Estate.
There are so many factors that come into play here… Right location, property, market you purchased in, renovations (and not over building for area). Plus then you have to ask the right price and get it on the market at the right time, in order to get the maximum profit out of it… To me… that’s too many variables in order to make money. This is why I believe in purchase, hold, rent and sell in 5+ years. You have cash flow, and potential equity growth.
I think that we are going to start to see the HGTV channels (and others like it) start to look at different shows than Flipping for Profit type shows, but rather we may start seeing shows that will target cheap reno’s and loving the home that you’re in, instead. The market can’t handle mom and pop flippers, and it most likely will not be the ‘in’ thing too much longer…
Weekly Market Update – Week 48
Filed Under Weekly Market Update · Tagged: calgary, real estate, stats, weekly calgary real estate stats, Weekly Market Update
Over the last week, the number of listings on the market has dramatically fallen off. We believe this to be a combination of a couple things.
1) Listings that were set to expire at the end of November did so, and have not been relisted yet
2) Listings have been taken off the market because we are heading into the December months and Christmas.
Although the number of sales dropped over all, the number of condos sold actually increased by 5 units vs. last week. The number of showings over the past week, we have noticed to slow down, and most showings are happening on the weekends, as the evenings get shorter.
Again, heading into Spring of 2009 we could expect more listings to come back on the market that have been or will be taken off, with more buyers coming out of the woodwork. Will this change the average and median prices? Probably not, because there are many sellers who are waiting until the spring to put their property back on the market. If you are considering this, your home may have more showings and potentially get offers, but the price most likely will not be increasing. Why? There could be more listings, but there could be more buyers as well, and the supply will stay high, and in the big scheme of things, the demand still lower.
