Flipping Central Pa.? You can do it.Jason Scott
Last year, nearly 500 single-family homes were flipped in Central Pennsylvania, according to California-based RealtyTrac Inc.
In all four metropolitan areas, the average gross profit was more than $41,000.
Not bad, but not in RealtyTrac's top 25 markets where flipping is most profitable.
RealtyTrac looked at more than 600 metro areas nationwide where flips occurred. A flip was counted as a situation where sale of a home occurred within six months or less of the previous sale.
To create the list, the firm took metro areas with at least 500 flips and at least a 9 percent annual increase in home values between the first quarter of 2012 and first quarter of 2013.
The top 25, which includes 11 metro areas in California and six in Florida, were selected based on the gross profit as a percentage of the original purchase price.
Orlando, Fla., was No. 1 at 63 percent — the average flipped price of $168,677 compared to average purchase price of $103,701.
How does Central Pennsylvania compare?
• Harrisburg-Carlisle: 142 flips; $56,419 average purchase; $98,310 average flipped price; 74 percent gross profit; -1.31 percent annual change in average home value.
• Lancaster: 150 flips; $77,316 average purchase; $134,271 average flipped price; 74 percent gross profit; 2.28 percent annual change in average home value.
• York-Hanover: 187 flips; $69,887 average purchase; $132,622 average flipped price; 90 percent gross profit; 4.4 percent annual change in average home value.
• Lebanon: 18 flips; $53,478 average purchase; $102,067 average flipped price; 91 percent gross profit; -15.94 percent annual change in average home value.
The number of flips was up in three of the four metro areas, according to RealtyTrac. Lebanon was the exception.
Jason Scott covers state government, real estate, media and marketing, and Dauphin County. Have a tip or question for him? Email him at email@example.com. You can also follow him on Twitter, @JScottJournal.