Skip to comments.Why San Francisco Is Flipping For The Fed: 2013 Gains Averaged $194K/Flipped House
Posted on 06/25/2014 5:21:41 PM PDT by Lorianne
It still may be recalled that 2012-2013 was the time of the Feds housing liquidity floodwhen hedge funds and LBO shops swooped in to buy busted mortgages with cheap money from the Fed/Wall Street. And once the party got started and prices in some formerly devasted markets like Phoenix, Los Vegas and much of California and Florida started soaring by 20-40% after March 2012, it appears that local flippers did not waste much time climbing aboard the fast train.
Redfin has some stunning figures out on profits during 2013 from house flipping in about 30 major markets. The short answer is that it beats working and makes a mockery of saving! In the combined markets, the average 2013 flip netted a gain of $90,000 or just shy of 2X the median household income.
But San Francisco turned out to be in a league of its own. There the average house flipper gained just under $200,000which is to say, a better payday than the total annual earnings of 95% of households in America. And in these blessed precincts it seem that a Fed triple whammy was at work.
(Excerpt) Read more at davidstockmanscontracorner.com ...
I’m working in the SF area right now. Housing costs are ridiculous. A water front condo in the “nice” area of Richmond (one of the highest crime areas here) are 1/2 million dollars.
An apartment, not in a high crime area, is around $2,500 to $5,000 a month.
Get me the h-e double thunder out of here!
Buy now while prices are low. The $2 million house today will sell for $20 million in 30 years. 10x every 30 years...mark my word.