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- Title
An Empirical Analysis of Residential Property Flipping.
- Authors
Depken, Craig A.; Hollans, Harris; Swidler, Steve
- Abstract
Beginning with a time-dependent definition of a house flip, the analysis examines flipping activity in Las Vegas from 1994 through mid-2007. We find that flip homes tend to be older and smaller than non-flip homes. Moreover, as the residential property market in Las Vegas begins to take off, flip homes become a more significant percentage of total sales. At the height of the housing boom in 2004, a typical flip produces an annual rate of return exceeding 60%. Even after adjusting for opportunity costs, this translates to economic profits of nearly 20%. However, shortly thereafter, the frenetic pace of the market begins to subside, and by 2007, economic returns to a flip fall to 0.
- Subjects
LAS Vegas (Nev.); NEVADA; RESIDENTIAL real estate; HOUSE flipping; HOME prices; OPPORTUNITY costs
- Publication
Journal of Real Estate Finance & Economics, 2009, Vol 39, Issue 3, p248
- ISSN
0895-5638
- Publication type
Article
- DOI
10.1007/s11146-009-9181-3