Speculators have been involved in a significant amount of home flipping in Nassau County. A home is considered to have been flipped when it is purchased and then resold within a period of 180 days. There were approximately 200 homes flipped in Nassau County during the six month period ending in April 2014. The average purchase price of the homes that were flipped was $316,000 and the sale price of the homes within that same six month period was an average of $423,000. This provided a profit of over 33% to the speculators doing the flipping.
Why Are Homes Being Flipped in Nassau County, New York?
The reason for homes being flipped in Nassau County has to do with the fact that home prices are going up and there has been an increase in new foreclosure lawsuits. During the first quarter of 2014, there was a 4% rise in the number of foreclosure cases initiated by financial institutions in the courts in Nassau County. There has been a 6% year to year increase in the value of homes in Nassau County.
Pursuant to RealtyTrac approximately 2% of all the homes purchased in Nassau County have been purchased by speculators and flipped.
Conclusion
Speculators are very attuned to market trends. The fact that speculators have gone back into the marketplace in Nassau County to purchase homes indicates they believe real estate is appreciating at a significant level in Nassau County. Does this make it the right time for prospective purchasers to purchase a house in Nassau County? Yes, I believe purchasing a home in Nassau County is an excellent investment at this time.
Elliot S. Schlissel is a foreclosure attorney. He has been defending homeowners in foreclosure lawsuits for more than 45 years. Elliot and his staff of attorneys are well known in the court system and have had an excellent success rate in helping their clients obtain mortgage modifications. Elliot and his staff of attorneys are available for free consultations to homeowners having financial difficulties.
