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Home Flippers Get Burned by US Housing Market’s Sudden Slump

Falling demand and rising interest rates mean some investors are likely to take losses on quick deals.

Bloomberg business news
The Dangers of Negative Equity

After an abrupt end to the US housing boom, home flippers who were winning big just months ago are now racing to stem losses.

The doubling of mortgage rates since January has crushed buyer demand and depressed values in investors’ most favored locations, from Phoenix and Las Vegas to Jacksonville, Florida. It’s a swift turnabout for flippers such as Tammi Merrell, who’s stuck with homes to sell and loans to pay.