The increase in interest rates by the Federal Reserve has significantly impacted the home flipping industry, affecting everyone from reality TV stars like Tarek El Moussa to small contractors. The housing market has experienced a decline in home flipping activity, with investors facing limited inventory and lukewarm demand. This has led to lower profit margins, labor troubles, and a shift in business strategies, such as diversifying into property-secured loans and wholesale home purchase contracts. The reality TV landscape has also adapted to the changing market conditions, focusing on discussions about rates, slow turnover, and alternative housing options to keep viewers engaged.
In episode 5 of "The Curse," Whitney's self-centeredness reaches new heights as she refuses to sell homes to anyone who doesn't sign a letter of support for the tribes and rejects potential buyers who don't meet her standards. Lucinda and Dennis, a couple interested in buying one of her houses, eventually walk out, leading Whitney to cast a fake couple for her reality TV show. Meanwhile, Whitney's refusal to acknowledge the crime rates and issues in Española raises questions about her commitment to helping the community. In the end, Whitney's desperation to avoid having someone like her in the neighborhood leads her to invite a white supremacist to move in next door.
As home prices fall and rates rise, buyers are dropping out of the market. Consequently, some investors are losing money on real-estate, according to a new report by Redfin. The report found that 13.5% of homes sold in the U.S. by an investor in the month of March were at a loss. This indicates that home flippers are not making as much profit as they used to, particularly in the western part of the country.
