clock menu more-arrow no yes mobile

Filed under:

Ready to Flip? LA Is a Pretty Good Place To Do It

Lately Forbes is reading like the E!/VH1/A&E of finance - they just love lists. 101 Most Outrageous, Sexiest, Craziest Celebrity Inflation-Adjusted Exchange Rates. Or something like that. Earlier this week Forbes told us LA was the Least Affordable City in the US. Today's list offers us some insight as to just why LA might be practically impossible to own a home in: Best Places To Flip A Home. Yes, that's right. LA comes in number 8 on Forbes' list. Forbes has a fairly complicated methodology. Just reading it made our tiny little brains hurt, but it has something to do with a market's rate of sales against inventory as well as data on new home construction. Basically, high demand, low supply = good for flippers. Supply surplus = bad for flippers. After calculating demand curves, the eggheads at Forbes then took a look at price appreciation over the past year using NAR's data, then threw in some Moody's numbers on investor share: "In a real estate market, the higher the share of investors, the more sellers outweigh buyers, which equals bad news in a bearish market." So SF and Seattle, and half of Texas beat us, but we're guessing not by much.
· Best Places To Flip A Home [Forbes]