Nearly one in five flippers who sold from April to June actually lost money on the deal, the highest level in 2½ years, according to HomeSmartReports.com
In my opinion, most people were trying to get rich quick. They were buying not only one home but three, four and some investors were buying them by the dozen. No joke...they were gong to make it big! According to the National Association of Realtors, investors bought about one out of every four homes sold last year. They were focusing on the hottest markets, such as California and Florida. Unfortunately these are the same markets that have had some of the largest corrections.
Even though some won't lose money on their investments they won't make as much as they thought. It looks like many of the investors have left the market. Sound like you've heard this scenario before? Remember the tech stock boom?
Even though I wasn't flipping properties, I also got caught up in the market correction. I purchased an ocean front condo on Myrtle Beach so I could get away and relax. When I closed on the condo October 2006 I had over $130,000 equity in it. Well....we are now down $50,000 below what we paid for it. It is still nice to get away and relax but the truth is I sometimes think about the potential loss I would have if I were to sell it!
Who would of thought that oceanfront properties would have suffered so much? I guess I will just keep renting it out until the market improves at the beaches. Maybe take a few more trips there this summer and enjoy what I have. I still love the beach and the antiquing is wonderful!
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