RealtyTrac said third-quarter data indicated flipping homes that cost $750,000 or more -- reselling within six months after purchase -- rose 34 percent in July through September compared to the same months of 2012.
The sharp increase in high-end home flipping pushed overall gross profits for house flippers in the third quarter up 12 percent compared to the third quarter of 2012, profits rising to $54,927 from $48,893 during that time, RealtyTrac said.
Average gross returns rose despite a a 35 percent drop in house flipping among all price ranges from the second quarter to the third and a 13 percent drop from the third quarter of 2012, data showed.
In hard numbers, 32,993 home flips were reported in the third quarter with 968 of those considered high-end homes -- priced above $750,000.
RealtyTrac said five markets -- New York, Los Angeles, San Diego, San Francisco and San Jose, Calif., churned out more than three-quarters of the housing flips.
"Increasing home prices over the past 18 months combined with decreasing foreclosures have created a market less favorable to the high quantity of middle- to low-end bread-and-butter flips that we saw late last year and early this year," said Daren Blomquist, vice president at RealtyTrac. "But the sharp rise in high-end flipping indicates there is still good money to be made for flippers willing and able to take on the additional risk of buying and rehabbing more expensive homes."
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