These were the hottest fix and flip markets in 2017

Study reveals where REOs were bought, sold last year

These were the hottest fix and flip markets in 2017

Interest from investors in fix and flip deals was strong in 2017 and looks set to continue.

According to a study from real estate marketing platform Hubzu, 20 markets stand out for having the largest number of Real Estate Owned (REO) properties in 2017 – with the South dominating.

The most active buy, renovate and sell markets were Huntsville (38% of REO properties bought and sold within one year), Clarksville (34%), Gainesville (30%), and Pensacola (28%) topping the list.

The Midwest and West also had several active cities including Lima (26%), Cincinnati (22%), Las Vegas (22%), Akron (21%) and Modesto (20%). There was one notable Northeast metro – York - with 16% of REO properties being bought and sold within the year.

At a state level, Ohio and California have the most MSAs on the list.

The markets with the largest average difference between purchase and sale price were Oxnard ($117,305), San Diego ($109,973) and York ($67,499). MSAs with the lowest difference are Akron ($2,191), Clarksville ($3,595) and Huntsville ($6,593).

“With tight inventory and appreciating home prices affecting real estate market conditions across the country, many people are pursuing fix and flip markets as strategic income opportunities,” said Patrick G. McClain, Senior Vice President, Hubzu Auction Services. “There is noticeable activity in the Southern and Midwestern markets, which may be less competitive. As more buyers seek smart investment opportunities, we can anticipate this trend of fix and flipping homes to continue.”

Top 20 Most Active Buy, Renovate, Sell Markets – 2017

1          Huntsville, AL                                                  38.14%           

2          Clarksville, TN-KY                                          34.25%           

3          Gainesville, FL                                                30.22%           

4          Pensacola-Ferry Pass-Brent, FL                    28.11%

5          Lima, OH                                                        26.83%           

6          Cincinnati, OH-KY-IN                                     22.76%

7          Las Vegas-Henderson-Paradise, NV             22.75%

8          Akron, OH                                                       21.03%

9          Modesto, CA                                                   20.93%

10        Lexington-Fayette, KY                                    20.72%

11        Elizabethtown-Fort Knox, KY                        20.67%

12        Virginia Beach-Norfolk-Newport News, VA-NC     19.69%           

13        Visalia-Porterville, CA                                     18.95%

14        Jacksonville, FL                                              18.50%

15        Reno, NV                                                        18.31%

16        Columbus, OH                                                18.16%

17        Oxnard-Thousand Oaks-Ventura, CA            18.12%           

18        San Diego-Carlsbad, CA                                17.45%

19        Green Bay, WI                                                17.36%           

20        York-Hanover, PA                                          16.99%

Methodology: Hubzu identified all MSAs with a population of over 100,000 and retrieved data within those MSAs on approximately 155,000 single-family REO properties sold in 2017. To find the top 20 most active REO buy, renovate and sell markets, Hubzu pulled the total REO flip count of each MSA (REO properties purchased and sold between January 1, 2017 through December 31, 2017) and divided it by the total REO sale count of each MSA. Data pulled does not confirm all REO property flips were renovated. The national and market data were sourced from public property data.