Have You Flipped?
by Erik GuntherMay 30, 2007
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"Real estate analysts say...would-be flippers stopped buying in 2006. People who bought condos before 2005 might still make money or at least break even if they sell soon, the analysts say, but those who bought at the height of the mania stand to lose a bundle."
— Abby Goodnough, "As Condos Rise in South Florida, Nervous Investors Try to Flee," New York Times, May 25, 2007
The tales of investor woes emanating from Miami resonated with readers of the Times this week. Real estate speculation built a foundation in Buzz back in 2004 and interest in the television show "Flip This House" remains strong. In general, TV ratings of real estate shows have blossomed as the market has flattened.
"Flip This House" follows a patented story arc of buying a home at its lowest point, fixing it up, and then selling for a tidy profit. But is flipping a game for everyone? Searches on "house flipping tips," "how to flip a house," and "house flipping 101" indicate that the concept of flipping still intrigues despite its inherent risks.
Studious flippers made mad dollars in an overheated real estate market, but crafty speculators have now moved on to the foreclosure market. Searches on "foreclosure homes," "foreclosure listings," and "bank foreclosures" have all jumped in the past week as folks look for a way to cash in on a down market.