[Svartalfiar]

The report by RealtyTrac found that home flipping in 12 active metropolitan areas last year was above a peak set in 2005, just two years before the U.S. mortgage market started to collapse, leading to a banking crisis and the Great Recession.

Correlation, not causation. If banks are giving out loans that people can't afford, of course those people are going to be buying houses for more than they usually would. House flippers have nothing to do with that.

"These sales artificially inflate home prices, making housing even less affordable for buyers and increasing the risk of a bubble," said Gardener.

What? No, they don't. Conducting repairs and improvements to increase the value of the home isn't artificial. It's a real value increase. And again, the home is only worth what someone is willing to pay for it. If the 'fake value' increased too much, people wouldn't buy these houses and they wouldn't sell. Most home buyers are willing to pay for this. All other factors the same, a 100k home that needs 50K of work isn't nearly as attractive as a 160K home that doesn't need work. Even though it costs 10k less.

It's only (arguably) an artificial inflation of value if they buy the house, don't touch/repair it, and resell it for more. But again, value is relative.

[aimhigh]

I love flippers. Two houses in my neighborhood were flipped. The repairs were extensive, and they helped maintain property values of the entire neighborhood.