Want to participate in a community of passionate, savvy individuals? Joining the ranks of home flippers—people that renew homes and sell them at profit—might be a great move!
However, the past few years have upended past house flipping trends. Real estate investing has always been a great bet, but the pandemic changed everything.
Can house flippers still make a profit? What house flipping predictions are in the works for 2022?
We’ve assembled a guide for house flippers to help you stay on top of investment trends, so you can have the best year possible!
Don’t Ignore Foreclosures
During the majority of the pandemic, there was a moratorium on rent raises, evictions, and so forth. This was a necessary reprieve for those losing jobs, family members, childcare arrangements, and so forth.
Now, the moratorium is over in many places. That means banks will catch up on all the foreclosures they couldn’t accomplish in the past months.
That’s why we expect foreclosure numbers to spike in 2022. These homes are often a golden opportunity for house flippers looking to make a quick buck.
These homes are often in great condition, which makes house flipping much easier. Keep an eye on local listings in your area!
How often have you heard the term ‘supply chain issues’ in past months? This may be a new term in our collective vernacular, but it impacts everyone’s life now.
Inflation, reduced inventory, increased labor costs, and skyrocketing prices all contribute to struggles in real estate and construction. When you flip a house, you need to minimize costs while adding value.
Adding inexpensive, high-value improvements to the home is the name of the game. With supply chain shortages and the above issues, it may be hard to reduce costs in this stage.
This may increase the price of the home for the next prospective buyer. Price increases could slow the flipping process, which is bad news for house flippers.
Value Rises Will Slow
Countless articles on real estate investing have been published on ridiculous real estate spikes in the past year-and-a-half. Due to increased demand, homes could sell for double their actual value.
Popular real estate sites like Zillow or Sell My Houser predict much slower value rises in the year ahead. The market can’t balloon forever.
While experts aren’t predicting dramatic reversals, they do expect slow increases in 2022. This will make it harder for house flippers to reap drastic profits like they might have done in 2021.
Being able to proceed at a reasonable pace, rather than trying to keep up with a ballooning market, is one of our top house flipping predictions for the new year ahead of us.
Home Flippers in 2022
Home flippers are facing lots of new trends in the year to come. From increased foreclosures to slowed value growth, there are lots of house flipping predictions to stay prepared for.
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