Portland is a Hot House Flipping, but Salem is Much Hotter

Thursday, March 17, 2016

GoLocalPDX Business Team

Portland's housing market is hot -- up more than 14% year over year, but Salem's house flipping is close to leading the country. In the Western portion of the U.S., Salem's 28% year-over-year increase in average housing price is second only to Salt Lake City's 32% increase.

A home flip is defined as "a property that is sold in an arms-length sale for the second time within a 12-month period based on publicly recorded sales deed data collected by RealtyTrac in more than 950 counties accounting for more than 80 percent of the U.S. population," 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,” said Daren Blomquist, Senior Vice President at RealtyTrac. “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 2007, and the number of flips per investor was at the lowest level since 2008.”

Salem v Portland

Salem homes may be getting flipped at a much higher rate than Portland homes, but the average home price is a significantly lower in Salem. The median home price of a property flipped in Salem is $130,000 and in the Portland metro area it is $199,000.

There were 110,008 investors or businesses entities that completed at least one home flip in 2015, the highest number of home flippers since 2007, when there were 130,603 home flippers -- just before the collapse of the housing market.

“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. “Homes flipped in 2015 were on average purchased at a 26 percent discount below estimated market value and re-sold by the flipper at a 5 percent premium above estimated market value.”

Related Slideshow: Portland’s 20 Hottest Neighborhoods for Real Estate

What are Portland’s hottest neighborhoods for real estate? The 20 neighborhoods below are ranked by the number of sold homes over the last 90 days. The information, along with the median list price and median price per square foot, comes from the real estate company Redfin. The population is from 2010 census data.

The sale to list percentage, also from Redfin, is the final selling price over what the listed price was, to show how close sellers came to their asking price. In cases where it is over 100 percent, the seller got more than then listed price.

Find out what the hottest real estate neighborhoods in Portland are:

Portland is a Hot House Flipping, but Salem is Much Hotter

Related Slideshow: Portland’s 20 Hottest Neighborhoods for Real Estate

#20 (tied)

# of Homes Sold Over the Last 90 Days: 34

#19 (tied)

#18 (tied)

#17

#16 (tied)

#15 (tied)

#14 (tied)

#13 (tied)

#12 (tied)

#11 (tied)

#10

#9

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#6

#5

#4

#3

#2

#1

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