This comment was left at the cnbc site about high-end flipping – I’m seeing the same thing around San Diego:
Article is behind, this is already slowing down here in Orange County – a lot of the properties are starting to sit on the market for awhile.
Thanks to daytrip for sending this in:
http://www.cnbc.com/id/101940018
Markets with the best return on flips in the second quarter included Pittsburgh (106 percent), New Orleans (76 percent), Baltimore (73 percent), Virginia Beach, Virginia, (66 percent) and Daytona Beach, Florida (63 percent). Metro areas with the highest dollar amount of average gross profit on home flips included San Jose, California, Washington, D.C., San Diego, Los Angeles and Seattle, all of which had an average gross profit of more than $100,000 per flip, according to RealtyTrac.
Daytrip also sent in this article about cnbc starting new TV shows on flipping too:
http://www.forbes.com/sites/helaineolen/2012/07/25/cnbc-to-promote-house-flipping/
I’m in one of the top rated schools in CA, in the LA area, and we have quite a few of these. The initial purchase starts at double the one in the video. One just down the street was purchased for $1.1 mill and after a total gut and addition it just went back on the market for $2.7 mill. It will be interesting to see what will happen.
I think the flipper might be six months too late to catch the frenzy. He is also a “new” flipper in our town so no proven record of his work. He also chose to go more modern on the interior.
Another similar one should be coming on soon, with similar prices, but that builder/flipper is a long time resident with a proven quality record and his project usually sell at the first open house. They tend to stick with an updated traditional vibe for the projects.