Greenville County topped all Counties in South Carolina with House Flips

Article courtesy of the Charleston Regional Business Journal:

Last year, 3,108 single-family homes were flipped in South Carolina, encompassing 5% of all home sales during 2015, according to a report from real estate data company RealtyTrac.

Home flipping — defined as property that is purchased and then resold within a 12-month period — increased by 4% across the Palmetto State since 2014, RealtyTrac said.

The median purchase price of S.C. homes was $85,000, while the flipped price was $130,000, meaning flippers earned an average gross profit of $45,000, the report said.

Across the United States, nearly 180,000 homes were flipped last year, accounting for 5.5% of all sales, according to RealtyTrac.

“As confidence in the housing recovery spreads, more real estate investors and would-be real estate investors are hopping on the home-flipping bandwagon,” Daren Blomquist, senior vice president at RealtyTrac, said in the report. “Not only is the share of home flips on the rise again, but we also see the flipping trend trickling down to smaller investors who are completing fewer flips per year. The total number of investors who completed at least one flip in 2015 was at the highest level since 2008, and the number of flips per investor was at the lowest level since 2008.”

The average gross profit for home flipping was $55,000 nationwide, the largest amount since 2005, the report said.

“More inexperienced home flippers with a smaller financial cushion could be a sign of an over-speculative market, but the data indicates that flippers in 2015 continued to operate within relatively conservative margins,” Blomquist said in the report. “Homes flipped in 2015 were on average purchased at a 26% discount below estimated market value and resold by the flipper at a 5% premium above estimated market value.”

Home flipping data for select S.C. counties

flips 2015
% of
total sales
% change
Home flipping
gross profit 2015

Source: RealtyTrac

Statement from Home Builder Rick Judson, Chairman of NAHB

On August 5, President Obama delivered a speech in Phoenix, AZ, that focused on the Federal Government’s housing-related policies.  Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Charlotte, N.C., issued the following statement in response to the president’s speech:

“NAHB applauds President Obama for affirming the importance of maintaining a federal backstop as part of efforts to revamp the housing finance system and protect the 30-year mortgage. This will preserve financial stability, promote investor confidence and limit taxpayer exposure.

“The President also stressed that a healthy housing market is critical to create jobs, build a strong middle class and maintain a vibrant economy. In normal economic times, housing accounts for more than 17 percent of the nation’s gross domestic product. Constructing 100 homes creates more than 300 full-time jobs and generates $8.9 million in tax revenues that help local governments to provide essential services such as schools, roads, and police and firefighter protection.

“Among other reforms, the nation’s home builders also support strengthening the FHA to facilitate the flow of mortgage credit to qualified home buyers, cutting red tape and easing tight credit conditions that are preventing creditworthy borrowers from obtaining home loans, and supporting the Low Income Housing Tax Credit to ensure the availability of safe and affordable rental housing. This will help spur job growth, provide homeownership and rental opportunities for all Americans and boost the economic expansion.

“NAHB looks forward to working in a bipartisan manner with the White House and Congress to achieve these goals in the weeks and months ahead.”

NAHB CEO Jerry Howard testifies before Congress

The National Association of Home Builders (NAHB) told Congress today that it will work with lawmakers to make changes to the Protecting American Taxpayers and Homeowners (PATH) Act legislative proposal to ensure that it provides the federal support necessary to maintain a strong and liquid housing finance system.

Testifying before the House Financial Services Committee, NAHB CEO Jerry Howard urged the committee to modify the PATH Act to make sure that the federal government continues to provide a backstop for a reliable and adequate flow of affordable housing credit in all economic and financial conditions.

“NAHB believes federal support is particularly important to ensure that 30-year, fixed-rate mortgages, the bedrock of the nation’s housing finance system since the 1930s, remain available at reasonable interest rates and terms,” said Howard. “As currently drafted, the PATH Act does not provide the federal support necessary to ensure a strong and liquid housing finance system, and we urge the committee to make the necessary changes.”

There are some positive elements in the PATH Act, and NAHB agrees that private capital must be the dominant source of mortgage credit, Howard said. However, ensuring the safety and stability of the housing finance system cannot be left entirely to the private sector.

“The historical record clearly shows that the private sector is not capable of providing a consistent and adequate supply of housing credit without a federal backstop,” he said.

NAHB has recommended to the committee that Fannie Mae and Freddie Mac be gradually phased into a private sector oriented system, where the federal government’s role is explicit but its exposure is limited. Federal support would be limited to catastrophic situations where carefully calibrated levels of private capital and insurance reserves would be depleted before any public funds were employed to shore up the mortgage market.

NAHB also urged House lawmakers to modify the sections of the bill outlining changes to the Federal Housing Administration (FHA).

“The PATH Act would drastically diminish FHA’s vital liquidity mission,” said Howard. “By simultaneously leaving all federal support for housing to FHA, and then by greatly reducing the overall scope and reach of FHA’s programs, the PATH Act would greatly limit homeownership and rental housing opportunities for many financially responsible and qualified Americans.”

Because there is currently a great deal of uncertainty among consumers and home builders due to the unresolved debate on reforming the housing finance system and the government sponsored enterprises, Howard urged the committee to move forward in a careful, prudent manner to provide needed assurance for the industry and consumers.

“At a time when housing is just starting to get back on its feet and provide job and economic growth, we don’t want to do anything that would reverse this positive momentum,” he said. “It’s definitely important that Congress be mindful of housing’s important role in the economy going forward.”

“NAHB looks forward to working with lawmakers to create a sustainable housing finance system that will ensure stability and liquidity in the financial system that supports homeownership and rental housing,” Howard added.

NAHB: Tax code rewrite threatens homeownership, rental housing, and home building

The U.S. Senate is considering revamping the tax code which could eliminate some or all housing tax incentives. The Senate Finance Committee recently announced it will consider comprehensive tax reform and initiate proceedings with a blank slate: no exemptions, deductions, or credits.

According to NAHB, this could harm the bottom line of all residential construction businesses, depress home values, impose a tax increase on home owners, and cause massive layoffs in housing and other industries

Many of the tax reform proposals have suggested eliminating or reducing the mortgage interest deduction, the Low Income Housing Tax Credit, the capital gains exclusion for home sales and the deduction of property taxes, among others.

NAHB has issued a Call-To-Action to HBA members asking them to contact their Senators and tell them to preserve housing tax incentives like the mortgage interest deduction and low income housing tax credit.  To act and contact your Senators, click here.

NAHB: Top 12 Accomplishments Summer 2012, Number 4: Elevating Housing Profile

Builder Review Daily is highlighting the top 12 actions taken on behalf of Home Builders so far this Spring.

Accomplishment number 4: Elevating Housing Issues in the Current Election Cycle Through Homeownership Rallies, a Nationwide Petition and Media Outreach

Highlighting the importance of homeownership to the voting public and putting housing issues in the spotlight for the November elections, NAHB has now held four successful Homeownership Rallies and has five more such events scheduled in key swing states across the country in coming weeks. These efforts, along with more positive data on the housing front, have contributed to a general improvement in the way that the media has been reporting on housing and the recognition that housing is emerging as a leading factor in the economic recovery.

NAHB has now held four successful Homeownership Rallies since the beginning of this year, the latest of which was in Detroit on July 20. Each of these events has drawn hundreds of participants and very good media coverage in their respective local markets. As part of these efforts, NAHB has also developed the website, which details the threats that housing faces in the current policy debate and the need to protect homeownership incentives within our national housing policy. The site also allows visitors to sign our petition in support of homeownership. Additional homeownership rallies have now been scheduled for Kansas City, Mo., on Sept. 25; Milwaukee, Wis. on Oct. 2; Columbus, Ohio, on Oct. 9; Richmond, Va., on Oct. 11; and Las Vegas on Oct. 18.

Meanwhile, there’s been a notable increase in the number of positive media reports on housing over the past two months, and NAHB has done its part to keep the positive momentum going by reaching out to the press at every opportunity with our perspectives on the latest data. One key message on which we’ve focused is the fact that residential construction is now starting to reassume its traditional role of helping to lead the economy forward following a recession. We’ve also compiled some of the latest positive news reports on housing at and encouraged our members to use these resources to make the case to their customers that housing is on the rebound, home prices are stabilizing and now is a great time to buy a new home.