Abstract
The housing market in South Florida was kiln-hot between 2000 and mid-2006, with a total percent change of approximately 172% in the Federal Housing Finance Agency House Price Index (FHFA HPI) for the Fort Lauderdale-area during this time period. Almost as dramatically as the rising tide lifted house prices, so did the ebbing tide wash away substantial amounts of housing-stored wealth between the mid-2006 peak and mid-2011 trough. During this latter time period, the FHFA HPI for this market experienced a total percentage change of approximately -48%. The purpose of this study is to consider whether or not flippers systematically benefitted from buying and reselling housing units with certain characteristics during the recent housing boom and bust in the South Florida market. This study considers physical characteristics, property value strata, and transaction timing as potential determinants of investment returns to residential condominium flipping in South Florida from June 2005, to June 2007, a time period that includes a distinct housing price peak in June 2006.