"In areas where home prices increased combined with higher mortgage rates, the pool of buyers decreases making flipping inherently riskier and ultimately not so attractive. Continuing Lecturer of Finance and Real Estate at UCLA Anderson School of Management Paul Habibi explains the fundamentals. “The big decline you see is from the amateurs who want to invest in a market where they see an upward trajectory. That’s what people look to take advantage of,” Habibi explains. “You can do a lot of things wrong in an up-trending market which can save you from your mistakes. That changes when the market changes and it filters out upstarts who don’t really know what they are doing,” Habibi said not mincing words. Financing has gotten trickier on those deals, weeding more players out of the game."
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