House flipping can be risky business. It sounds easy enough; buy a fixer-upper, put a little bit of sweat and money into it, and then sell it at a profit a few months later. Everyone likes to think they can do it, but if it goes wrong, it can go very wrong. Additionally, some people view house flipping as an indicator of an over-heated housing market, according to Trulia.
For example, in 2006 the flip rate reached a peak at 8.6 percent, and we all know what happened not too long after that. Fortunately, the national flip rate has not changed much in the past year and, at about 5 percent, it is still well below the 8.6 percent peak.
But some markets are seeing flip rates well above the 2006 national peak. Las Vegas is leading the way with 10.4 percent of home sales being flips. Miami is another city that has exhibited strong growth in the flipping market. Over the past year, Miami jumped from 4.7 percent of its home sales being flips to 6.4 percent, the largest jump in the country during that time. There are a few other markets in Florida that have seen large increases, as well.
Meanwhile, Detroit has the lowest flip rate at just 1.1 percent.