Real Estate: House-Flipping Helps Recovery

Homeowners see rise in housing market with help of house flippers.
3:00 | 10/15/12

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Transcript for Real Estate: House-Flipping Helps Recovery
And as we know that debate will be filled with questions about jobs and the future of this economy and today we saw one sign that an engine of growth is gaining steam. New numbers out today show consumers are spending more. Retail spending up and part of the comeback, the housing market stirring to life. Abc's cecilia vega tells us how much. Reporter: It's the latest sign that america's real estate is on the rebound. Greg steinberg and alexandra becket are flipping houses. They bought this two-bedroom home in los angeles and plan to fix it up and sell it fast, making a $50,000 profit. So this is the hallway that leads to the bathroom, and the two bedrooms over there. Reporter: This was the bathroom. Was, the operative word. Just four months ago, this was a living room and the dining room. And you can see now this house is completely under construction. Just gutted. But in a matter of just two months, it will be on the market and up for sale. Flipping homes helped fuel the real estate bubble, and it made for tv gold. Remember all those shows? From "flip this house" to "flip that house." One, two, three. Let's get paid. Reporter: Today around the country, there are 25% more homes being flipped than last year. And sellers are walking away with an average profit of $29,000. Much the houses that you're selling, how many wow say are housing that are being flipped? Between like 25% and 40%. Reporter: Wow. But in this new generation of house flippers many greedy speculators are being replaced ious buyers. Home sales may be on the rebound, but there's still more work to be done. Six years ago the median home price was about $230,000. Today, it's only $187,400. Still, there are now profits to be made for those willing to gamble. It's very risky. It's high stakes poker. Reporter: High stakes poker that once again comes with a big payoff. Cecilia vega, abc news, los angeles.

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