How To Flip Houses In California

Home values have risen by 28.1%:

Over the last year in California (at the time of writing), home values have appreciated by 28.1%, indicating that the housing market is simply booming.

As with most states across the US, the housing market in California also experienced a slow-down as a result of the pandemic, but it has certainly made a strong comeback since then and continues to do so as the supply and demand imbalance continues. Tight inventory and low mortgage rates have fueled the home price rise in California.

Homes in California are above average price:

The average home value in the United States is approximately $269,039 in 2021, which is more than double what it was back in 1999. California sits a lot higher than this, with an average home value of $717,854.

While this means that real estate investors need a larger amount of capital, this also creates an opportunity for investors who are looking to make higher profits from property flipping.

House flips in California are generally more lucrative:

With house flippers generating around $78,270 per flip. This is significantly more than most states in the US, where it’s common to generate around than $60,000 per flip.

While investors may need to fork out more funds initially, the profits they can make are higher and therefore balance out the impact of this.

Statewide sales-price-to-list-price ratio was 102.9 percent:

In September 2021, California’s statewide sales-price-to-list ratio was over 100%, anything less than this means that homes sold for less than the asking price and anything more means that homes are selling above their asking prices.

In September, 62% of homes in California sold above their asking price, which shows that it’s a sellers’ market. This bodes well for house flipping because investors can sell properties for more than the market value and make a higher profit.

Median number of days on the market is 29:  

As of September 2021, the median number of days that properties have been sitting on the market in California is 29 days. The average time a home sat on the market in the US was 25 days in 2020. The amount of time that a home spends on the market indicates how competitive the market is. The longer a home spends on the market, the less competitive it is for buyers.

California’s housing market statistics show that it’s a sellers’ market, however the competition amongst buyers isn’t too high either. This means that investors can sell properties easily and also find properties on the market with only a small amount of competition. It’s a great scenario for investors wanting to begin flipping homes.

Fresno is one of the hottest markets:

Fresno, CA has become one of the most booming housing markets in the country, with monthly rental prices increasing by 60% since 2017. Home values in Fresno have also risen by about the same amount, and now sit at $331,000.

New investors are attracted to apartment complexes in the area at a rapid rate, and the population in Fresno is growing quicker than any other city in California. Needless to say, with all the activity in the market, Fresno is becoming more attractive for investors.

Areas with the fastest growing sales prices:

• Rancho Mirage, CA39.1%
• Lincoln, CA33.7%
• Cathedral City, CA33.1%
• San Ramon, CA32.5%
• Alameda, CA32.3%
• Danville, CA32.3%
• Beaumont, CA32.0%
• Vista, CA29.1%
• Victorville, CA28.3%
• Rancho Santa Margarita, 28.2%