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Two Benefits of a Rebounding House Flipping Market

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After years of investors avoiding the house flipping market, rising home prices and a general recovery of the economy has breathed new life into this once abandoned market. Investors who had turned their focus to rentals have begun re-entering the house flipping market making it more competitive and driving up prices. Homes that would have had few investors interested even just last year have beguin to be purchased within days on the market.

Rising home prices naturally benefit any seller. With home prices genreally rising across the nation, more people and banks have put their homes on the market. With pent-up demand for these homes and a general under-supply of homes available for sale, these homes have not lasted long on the market. This has forced investors to increase their offers in order to compete amongst themselves as well as homebuyers who are willing to take on the challenge of a substantial renovation.

This recent surge in investor interest not only helps drive up prices in the market but also helps create an inventory of move-in ready homes for homebuyers to purchase. To say it in a different way, as house flipping rebounds the general market benefits with the increase in sales price (once the renovation is completed) and the improvement of neighborhoods.

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