Tuesday, June 24, 2014

Petworth is top neighborhood for home flipping in the country

Our area has been a popular home-buying destination for a few years, and here's some surprising data behind it: Redfin, a real estate site, published a new report that says Petworth is the top neighborhood in the country for flipping homes.

Defining the neighborhood as the area north of Spring Road and Rock Creek Church Rd and south of roughly Emerson Street, the average flip netted $312,000, more than anywhere else in the country. (They define a flip as selling a house less than 12 months after buying it.) Other neighborhoods in the city make the top 20 too, with Brookland coming in 3rd and Ft. Totten and Stadium/Armory at 6th and 7th.

This could imply a superheated housing market, or people wanting to make a quick buck. Good for the sellers, I suppose, but maybe not good for anybody who wants to live there.

It's not all bad news though -- the site does report that total flips are down since 2012, and Columbia Heights, interestingly, isn't on the list. Maybe house prices are high enough that flipping doesn't result in that much gain.


Jon said...

I suspect Columbia Heights isn't on that list because most flips there are rowhouse to condo rather than just updating a SFH.

Anonymous said...

This is great news for the neighborhood! These statistics represent millions of dollars in investment into our neighborhoods.

Hypothetically, let's say that there was one house at the listed means. No non-investor was willing to buy that house a year ago for $354k. That house must have been in pretty lousy condition, and neighbors probably all thought it needed a lot of work, or was even a blight or eyesore.

Somebody came in and did enough renovation work on the house to turn it into something worth over $660k. Homebuyers aren't idiots, and a fresh coat of paint and new appliances does not add $300k to the value of a house. The flipper surely made a lot of cash on this hypothetical house, but it's likely that they did well over $100k in renovations to get there. It's great to see that kind of investment in the houses around here.