Monday, September 25, 2006

Flipped Houses: Detached Homes (NW)

I'm aware that most of my posts have focused on the condo market, which can be explained by the fact that condos constitute about 50% of all housing sales in DC. However, to maintain a "fair and balanced" approach, I've begun researching flips involving single family homes (SFH).

DC groups SFH into three categories: rowhouses, detached houses, and semi-detached houses. My first analysis is of detached houses flipped between January 1, 2005 and July 31, 2006. To be included in the analysis, the home had to have been purchased and then resold during that period; initial purchases pre-dating January 2005 are not included. During the analysis period, 96 detached homes were flipped in DC. Of that number, 31 were sold in NW, 51 in NE, and 14 in SE.

I'll first post information about detached homes sold in NW DC. The table below shows those homes that were flipped in the analysis period, with each sale's profit/loss and days on market (DOM) shown. In the aggregate, the flip of a detached home in NW DC yielded a $119,970 nominal profit after an average 200 DOM.

My analysis depended upon real property sales data available from DC; it's quite possible there are errors in their data (believe me, it happens quite frequently), but I've done my best to either correct the data or delete records with egregious errors that I cannot correct. Two flips in NW DC were excluded from this analysis because I had doubts about the data.

No comments: