New data show that home flipping at the luxury end of the market is growing, up 4 basis points annually in 2018 to 2.6 percent of homes priced at more than $1 million.
Despite the recent growth, luxury home flipping remains less common than in the years leading up to the housing crash in 2008. Realtor.com's data provided to luxury real estate listing site Mansion Global examined markets where at least 20 home flips were luxury properties from January to October 2018. Flips were defined as homes that sold twice for a profit within 12 months.
Real estate analysts say that house flipping in the early 2000s helped fuel the burst of the housing bubble, and as a result, banks today are exercising far more caution when determining who qualifies for large home loans. Today, house flipping is at a 10-year high across the country, but mostly for homes valued in the low millions.
"The main trend we’re seeing is that the million-dollar mark is not what it used to be. If you look at the 2018 numbers, there’s a lot of activity happening at the entry level," said Javier Vivas, director of economic research at Move.com, which operates realtor.com. "There’s still demand at that price point, which is causing activity to surge slightly.