Built-up demand for housing is now finally being unleashed in markets all around the United States, resulting in a severely diminished amount of available properties on the market, shorter time on the market, and steadily rising listing prices. As far as California is concerned, a number of cities have become exceptionally active in terms of transactions since last year. To pinpoint the local markets that are ideally primed for fix and flip investment projects,Jcap Private Lending has crunched the numbers related to new listings, number of pending sales, inventory levels and average sales price from August 2020 to August 2021. Based on these data points, the following areas have been identified as promising markets to launch your next fix and flip investment project.
Situated in bustling Orange County, just southeast of Los Angeles, Irvine is a rapidly-expanding community with a population that has added nearly 100,000 new residents over the past decade. The amount of new listings of available homes are up around 32% since 2020 and pending sales have more than tripled over the same timeframe. Unsurprisingly, this very active transactional rate has translated into a drastic reduction in inventory levels—which have dipped below 50%. Since last August, the average sales price in Irvine has jumped more than $100,000 to around $975,000. Real estate investors can still find affordable properties that, after renovations, will be in high demand at just as high a price—which means a potentially lucrative return on investment.
The housing market in Bay Area communities is almost perpetually characterized by high buyer demand and comparatively high prices. Fremont, on the other hand, is on a whole other level, with the average sales price increasing over $200,000 since 2020 to $1.268. New sales listings have similarly jumped by 55%. Like Irvine, inventory has taken a substantial hit, falling by over 40%. For real estate investors with the financial resources to do so, getting involved in this market now while buyers are willing to pay above-market prices could lead to a healthy payday for a successful fix-and flip project.
This Ventura County city, approximately 60 miles to the west of Los Angeles, is experiencing tons of transactional action over the course of the past year. Oxnard has seen its inventory dwindle steadily since the onset of the pandemic, with the amount of available properties on the market being nearly cut in half. Over the same time window, pending sales have increased two-fold and the average listing price spiked by nearly 24%. Savvy real estate investors can capitalize on the COVID-19-induced mass migration from nearby urban Los Angeles by snapping up a promising fixer-upper in Oxnard at a reduced price point and reselling it amidst the consistently high-demand that could land them a huge payoff at the end of the day.
Elk Gove is a growing suburban community of around 180,000 residents just outside the city limits of Sacramento. As housing markets continue to rebound from the pandemic lag, Elk Grove has proven to be particularly robust. Both the number of listings and pending sales have risen by over 30% since 2020. Continuing with the trend in the other cities listed above, available inventory has also plummeted to just 73 homes available in August. Over the same time frame, the average listing price increased by a whopping 36.4% to nearly $600,000. Aspiring fix and flip investors can take advantage of the inventory gap by snagging a run-down property, making smart renovations and marketing the new listing to the large base of homebuyers looking for housing options in this in-demand community.
Get Funded, Get Flipping
Ready to get started on your next fix and flip investment project?Jcap Private Lending can get you the money you need, when you need it. No more waiting for months for traditional bankers to disburse your funds. Our team of private lending experts prioritize efficiency so that you can keep your project on time and on budget. We are a trusted private money lender who would love to help you close on your next deal. Contact us today to learn more!