As the housing market gained significant momentum last year, home flipping was also on the rise, and the Tampa area was mentioned as one of the leading markets in that space in 2016. According to research from national real estate website Trulia, the Tampa metro area, which includes Tampa, St. Petersburg, and Clearwater, ranked 3rd in the country for house flips in 2016, which can largely be attributed to rising home prices and job growth throughout much of the region.
As noted by Trulia, roughly 6.1% of all home sales in Tampa in 2016 qualified as a home flip, which is officially defined as the purchase of a market rate home that’s sold again shortly after for a higher price because of improvements or short-term profit. Compared to 2015, the rate of home flips around the Tampa market increased by over a full percentage point, and the 6.1% figure also market the highest level seen for home flips in the area in over a decade.
Trulia also mentioned that 2016’s home flip ratio nationwide was at its highest level since 2006 when approximately 7.3% of all home sales qualified as a flip. Around that time, Tampa’s home flip ratio was recored at 8.4%, which ranked 3rd in the entire country behind Las Vegas and Daytona Beach.
As alluded to above, most analysts feel rising home prices are leading to more house flips, especially given that average home prices increased in 99 or the 100 U.S. metro areas that were analyzed in the report. Home prices in nearby North Port-Sarasota spiked 10.5% in 2016, while prices around Tampa-St. Pete resisted an 8.8% gain.