Atlanta Ranked One of the Best Cities For Big Profit Flippers

Atlanta Ranked One of the Best Cities For Big Profit Flippers

Atlanta is one of the top places in the US where flipping houses snag a big profit, according to AATOM Data Solutions. In general, the gross return on investment yields up to 121% with a profit of around $55,000. This is primarily due to a number of homes still underwater. In the first quarter of 2016, 46% of properties were still underwater on their mortgage, meaning they owe more than the property is worth. This is not to say that Atlanta home prices haven’t recovered.

According to market stats across the Atlanta Metro area, prices are actually up and doing well. At this time last year, the median sales price for the Atlanta metro area was around $245,000. We saw its highest peak in August of this year or $270,000 and has slowly declined to about $260,000, which is still $15,000 more than last year.

The price per square foot has gradually increased from $178 per square foot in November 2015 to a steady $190 per square foot as of the end of November 2016. The median rent has also increased quite dramatically. For the last quarter of 2015 and into the first quarter of 2016, the median rent was around $1200 per month. It’s currently about $1400 per month. This is good news for landlords and investors looking to flip a property for monthly cash flow income.

Inventory has also increased dramatically. The total number of properties on the market has increased about 50% over last year at this time. This is an influx of about 1700 more properties on the market. The median days on the market is between a 35 and 45 days according to several popular real estate websites.

[Read more: I May Not Be The Listing Agent But I Can Certainly Help You!]

Even though markets are great for investors, the Business Journal for the Atlanta area states that it remains relatively a seller’s market in most areas. New property listings totaled nearly 5600 homes, up 1.6% from October 2015 and down 8.6% from previous months in the year. The supply of available homes for sale over a 12 month period decreased to 3.4 months. This means that if there are no more listings coming on the market as of today, it would take no more than about 3 1/2 months to absorb the current available inventory. This is also known as the absorption rate.

If you’re interested in a great property, investment home or condominium or if you’re looking for your own primary residence, contact my office today. I have the inside scoop on a lot of new listings coming up that may perfectly fit your search criteria.

Additional:  Atlanta Home Buyers and Sellers, Have You Been Misinformed About Realtor Commissions?