Real estate investing has been among the most lucrative investment opportunities across all markets, especially through the market boom of 2020 and 2021. With property prices still sitting pretty near their all-time highs and mortgage rates still in the basement, fixing and flipping has become a more intense market than ever before. Looking to get started with fix and flipping? Take a look at this latest “glimpse into the market” with the professionals from EMCAP Lending:
Fix and Flip News from Lumber Prices to New England Housing Markets
Lumber Prices Back to Normal: As shown by Business Insider’s Markets tool, after one of the most dramatic spikes in commodity prices ever, lumber has returned to pre-spike rates. In fact, compared to last year in September, lumber prices are nearly 50% cheaper. Although the decrease in lumber has been inspiring, Bloomberg has written that there are some concerns about another small spike in lumber prices in the wake of Hurricane Ida across the Eastern United States.
Redfin CEO Claims that the Market is Near the Top: In a Closing Bell interview with Glenn Kelman, CEO of Redfin, he claims that the real estate boom is nearing the end – at least of the dramatic growth we have gotten used to over the past year. One third of homes are still selling within a week of being listed across the United States, and that is likely to not slow down any time soon. Kelman explains in the interview that a roughly 10% increase in listings is the first increase in inventory since the beginning of the COVID-driven market spike, but that demand for housing is still riding high.
House Beautiful Outlines Best and Worst Flip Markets: While at the beginning of the year there was a lot of conflicting speculation about which housing markets will be better or worse for fix and flipping, the second half of the year has been a little more digestible. In a House Beautiful article from July of 2021, you can take a look at the top ten best cities according to the WalletHub data pool provided by a study released the day before. Among the worst cities for fix and flips are Newark, New Jersey, and San Francisco, California. Are you already in a top ten city?
Luxury New England Towns are Sellers Markets: Although it can make entering the market a challenge, once you’re in, you’re nearly guaranteed to profit. Homes that were at one point “vacation homes” have become year-round housing for folks who had fled bigger cities throughout the COVID epoch. In an article from Real Estate by Boston.com, it is illuminated that homes on Massachusetts’ Cape Cod and Martha’s Vineyard are fetching 25% more than their listing price. This market environment is fueled by a lack of property inventory for new housing developments in these exclusive neighborhoods along the coast, resulting in incredible demand with equally incredible lack of supply.
All signs point to a strong finish to the real estate market’s year – while the market isn’t heating up like it was this time last year, it is still hot. Fix and flipping remains among the most exciting and lucrative ways to invest, and many markets are ready and waiting for you to break in. Need a little help snatching up the perfect property for your fix and flip business? Consider the experts with EMCAP Lending – our team of professionals are eager to fuel your dreams.
For more information or to get pre-qualified for fix and flip loans in minutes, please contact us today.