Bay Area house flippers face lean year, economists say

The San Jose Mercury News reports:

San Jose and San Francisco lead the nation in house flipping, according to a study released Thursday by online real estate site Trulia, but the best days for making a profit may be over as price gains slow.

The market changes have created dangers for amateurs and slim pickings for professionals who buy, fix up and resell homes in a short time, hopefully at a profit.

"People better be awfully careful," said Kathy Fettke, CEO of Real Wealth Network in Walnut Creek, an investors club that meets in San Mateo, San Jose and Walnut Creek.

"Price gains can't happen forever. This is a pattern that happens every 10 years, where things go really well and suddenly they don't," she said. "The amateurs are going to get clobbered."

Real estate doesn't always go up.