As the housing market of the United States, this spring, is riding on low mortgage rates and increasing price rise, MarketWatch has compiled a list of cities where home flipping - buying or selling a house - is the most profitable.
For the survey, MarketWatch used data from RealtyTrac on the return of investment, average gross profit, flipped price and the number of homes flipped in the area.
It was found that home flippers made about 48 percent profit on sales in 10 of the surveyed metropolitan areas and the sellers were able to buy another property in all but one of the 10 areas for lesser than the average countrywide asking price.
Take a look at the top five cities where home flipping was the most profitable in the first quarter of 2014:
1. Reading, Pa.,
The return on investment on selling a home in Reading was 131 percent and the average gross profit was $100,667. About 76 homes were flipped (bought and sold) in the first quarter and the average flip price was $177,733.
USP: Improving economy.
2. Pittsburgh
The return on investment on selling a home in Pittsburgh was 89 percent. The average gross profit earned was $48,806 with the average flip price being $103,755. About 90 homes were flipped in the first quarter.
USP: Foreclosed homes sold at exceptionally high prices in the city.
3. Deltona-Daytona Beach-Ormand, Fla.
The return on investment on selling a home in the bay-side city was 68 percent with an average gross profit of $45,030. About 72 homes were flipped in the city with the average flip price being $110,812.
USP: The real estate mantra "Location! Location! Location"
4. Omaha-Council Bluffs, Neb.-Iowa
The return on investment on selling a home Omaha was 59 percent with an average gross profit of $37,425. About 271 homes were flipped in the city with the average flip price being $100,912.
USP: Low unemployment rates.
5. Palm Coast, Fla.,
The return on investment on selling a home Omaha was 57 percent with an average gross profit of $54,939. About 76 homes were flipped in the city with the average flip price being $151,515.
USP: Large tourism industry and less population.
Check out the complete list here.
While this is a list of the best home flipping markets, you can also take a look at the top lucrative global markets for real estate investment.
Also take a look at the seven U.S. cities that have witnessed the most changes in home prices, here.
