Last week, we told you that San Francisco flippers are selling houses for, on average, 31% more than they bought them for. This week, new research from Redfin has delved into the flipping market and found that flippers in San Francisco are seeing higher gains on their flips than those in any of the other major markets studied. This isn't too surprising, since last week's report showed that the sales price for a flip in our city is higher than anywhere else except Pitkin County, Colorado, home to Aspen, and Marin County. In a record year for flips nationally, the average gross gain in the 25 markets examined by Redfin was $90,200, while in San Francisco it was $194,600. The study did not delve into net profits. The study notes that improvements can range from simple painting to full gut jobs, which cost from $60 to $120 per square foot.
The three neighborhoods in San Francisco that had the highest average monetary gains were the Sunset District, with $225,600, Bayview, at $196,200, and Visitacion Valley, at $180,100. All three of these neighborhoods were among the top fifteen in all of the markets in the study. Although sales prices in Bayview and Visitacion Valley are well below San Francisco's median price, flippers can still find bargains there, with average pre-flip prices at only $338,600 and $386,700 respectively.
· The Average SF Flip Sells for 31% More than Its Initial Price [Curbed SF]
· What's Up With the Flipping Market?! [Redfin]
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