Is Flipping in Trouble?

Six Reasons Why Flipping Houses Still Makes Money

1. Housing Prices

Median home price across the country dropped only 1.7 percent in 2006. That statistic certainly doesn't signify a bust in the real estate market. They way property values have been increasing over the past decade, that figure is more of a bump in the road than a major disaster. Most homeowners are still far ahead, even with the slight decline in home prices they experienced this year.

2. America's Supply and Demand

The number of new households being formed and an increasing population keeps pressure on building new homes.

3. Mortgage Interest Rates

Long-term mortgage rates are only about a percentage point above historic lows. The Fed has stopped raising interest rates, as well, which indicates that they are comfortable with the situation.

4. Gasoline Prices

The recent decline in gas prices encourages home shoppers to look for affordable housing in commuting distance.

5. Employment

The country's unemployment rate indicates that Americans are better positioned to make their house payments and will continue to qualify for new mortgages.

6. Consumer Shopping Trends

Last Halloween's consumer spending outdid previous years. Home improvement spending is also at an all time high. America's economy seems secure.

What does this mean for the house flipper? If you get in and out in the same market, you can still make money flipping houses. When you buy right, at a bargain price and calculate repair expenses correctly, your investment should be safe.

Free No Money Down Real Estate Investing MP3

Jeanette Fisher, author of real estate investing and interior design books, offers free ebook on Flipping Houses and before and after pictures of fixer at http://www.doghousetodollhousefordollars.com

Copyright © 2006 Jeanette J. Fisher