Real estate investors flipped more homes in the Fresno metropolitan area in the third quarter of this year compared to last year and made a sizable profit, according to a report released Thursday.
Investors bought, renovated and sold 182 homes in Fresno during the third quarter, a 47% increase from 124 properties at the same time last year, the quarterly home flipping report said.
RealtyTrac, an online housing data company, compiled the report showing a 13% drop nationally in home flipping, but an increase in the average gross profit of each home sold.
In Fresno, the average purchase price of a house was $141,908. Investors then renovated and sold the home for an average of $192,585 a profit of $52,704, or 36%. That's quite a jump from last year when investors made a profit of $29,977.
Nationally, investors made an average profit of $54,927 off each home a 12% increase from last year.
As the inventory of cheap homes falls, investors are being driven to more high-end homes, which sell for $750,000 or more, allowing them to make a bigger profit, RealtyTrac said.
"Increasing home prices over the past 18 months combined with decreasing foreclosures have created a market less favorable to the high quantity of middle- to low-end bread-and-butter flips," said Daren Blomquist, RealtyTrac's vice president.
"But the sharp rise in high-end flipping indicates there is still good money to be made for flippers willing and able to take on the additional risk of buying and rehabbing more expensive homes."
Housing council extends to Bakersfield
The Community Housing Council of Fresno has opened a small office in Bakersfield to help homeowners in foreclosure and victims of mortgage scams.
The Truxton Avenue office, which has one counselor, is the nonprofit housing counseling agency's second location since being founded in 1994.
The main office is near Blackstone and Ashlan avenues in Fresno.
A lot of people are being scammed down there, said John Shore, executive director. Kern County started a task force on fraud which "showed me there is a need down there" for help.
The agency provides foreclosure and homebuyer education workshops across the central San Joaquin Valley. The Bakersfield office opened on Sept. 1.
Granville Home of Hope drawing Saturday
Granville Homes will announce the winner of its eighth Home of Hope giveaway on Saturday.
There's still time to grab your $100 ticket for a chance to win a two-story, 2,216-square-foot home valued at more than $270,000.
The three bedroom, 2 ½ bathroom, two-car garage is located in the Sunnyside Grove community near Fowler and Church avenues in southeast Fresno.
To buy a ticket, call (559) 440-8388.
In November, builder De Young Properties will hold its drawing for the seventh annual St. Jude Dream Home Giveaway. The winner will be announced during a live television special Nov. 10 on KMPH (Channel 26.1).
The reporter can be reached at (559) 441-6495, firstname.lastname@example.org or @bonhialee on Twitter.