'HGTV absolutely ruined people's brains';House flippers are being criticized for buying a New York home at $260,000 and now listing it for $1.2 million.

On July 21, 2023, a viral social-media video has brought attention to a New York home listed for an astounding $1.2 million in June. What surprised many was the revelation that the same house had been purchased for a mere $260,000 back in July 2020.

The property, located in Beacon, New York, underwent renovations and upgrades before being relisted at its current eye-popping price. The original two-bedroom, two-bathroom, 83-year-old residence captured the fascination of social-media users, who are now discussing the implications of such a steep price increase amidst a challenging housing market.

Last year, home flippers faced difficulties as the housing market experienced setbacks. The considerable disparity between the original purchase price and the current listing has led some to raise concerns about housing affordability, sparking a wider conversation on the impact of such practices.

The attention-grabbing TikTok video shed light on the stark difference in the property’s value over a relatively short period, drawing both criticism and reflection on the effects of real estate trends in an increasingly competitive market.

In the viral TikTok video, the creator directed a pointed message towards the avaricious and unrealistic house flippers and corporations prevalent in their area. The video urged viewers to take a guess at the exorbitant price of a recently acquired property.

Following renovations, the house made its way back to the market in June, sporting an astronomical price tag. Zillow’s listing now presents the property as a three-bedroom, three-bathroom home, showcasing a “contemporary take on the classic 1940s cape cod commonly found in the Hudson Valley.” The striking transformation of the house has undoubtedly captivated attention, with many astonished at the notable shift in both style and value.

When contrasting the recently discussed property with its neighboring house, a clear discrepancy in both size and price becomes apparent. The neighboring residence stands as a two-bedroom, one-bathroom dwelling, which, despite its seemingly modest features, was purchased for a substantial $377,000 in December 2020.

The disparities in pricing highlight the dynamic nature of the local real estate market, particularly within the specific ZIP code. According to Redfin’s data, the median listing price for homes in this particular area stands at an impressive $550,000, while the median sale price hovers around $522,500. These figures shed light on the overall housing market’s average price range and the actual prices at which properties are being transacted.

This information serves as a valuable point of reference for potential buyers and sellers alike, as it offers insights into the prevailing trends and values within the neighborhood. Such data can empower individuals to make informed decisions when navigating the real estate market, ensuring that they stay within realistic expectations and avoid overpaying or undervaluing properties.

Overall, the comparison between the two houses and the broader local market provides a meaningful context to the ongoing discussion about housing affordability and the factors influencing property prices. Understanding these price dynamics helps prospective buyers and sellers strategize effectively and fosters a transparent and competitive real estate environment.

TikTok users shared their shock about the price jump, with many commenting that their initial estimate was way off. The video later made it to Twitter, where it went viral and accumulated even more opinions.

—sean mcguire (@seanw_m) July 18, 2023

One person commented: “omfg at first I said $450k, then I saw the house after the flip and said $800k and I was very very wrong. We need serious home pricing regulations.”

“HGTV absolutely ruined people’s brains,”

another added.

The viral video has emerged amidst a challenging time for Americans, as they navigate through a stumbling housing market. A report by Insider’s James Rodriguez shed light on the prevailing conditions, revealing that mortgage rates were soaring, homeowners were holding onto their properties, and the market was engulfed in fierce competition, aptly referred to as the housing Ice Age.

The implications of this housing Ice Age are far-reaching, as prospective buyers contend with elevated mortgage rates that make homeownership a more daunting prospect. Simultaneously, a shortage of available homes for sale creates a sense of scarcity and intensifies the competition among buyers. As sellers choose to hold onto their properties, the inventory of homes on the market dwindles further, exacerbating the housing market’s challenges.

Amidst this frozen landscape, potential homebuyers find themselves struggling to secure their dream homes, facing bidding wars and soaring prices. The housing Ice Age reflects a pivotal moment in the real estate landscape, one characterized by unique obstacles and uncertainties for both buyers and sellers.

As the situation continues to evolve, experts and stakeholders closely monitor the market dynamics, seeking solutions to thaw the frozen conditions and restore a more balanced and accessible housing market. Government policies, economic indicators, and shifts in demand will all play critical roles in shaping the future trajectory of the housing market, striving to find a balance amidst the challenges posed by the housing Ice Age.

The struggle reverberated across the industry, with house flippers in fall 2022 slashing property sale prices — meaning a potential loss in profits — or switching careers to become landlords. In June, Toorak Capital Partners told Insider that some house flippers were still seeing profits but that they were becoming pickier about which projects to pursue.