We add arbitraging middlemen - investors who attempt to profit from buying low and selling high - to a canonical housing market search model. Flipping tends to take place in sluggish and tight, but not in moderate, markets. To follow is the possibility of multiple equilibria. In one equilibrium,...

We add arbitraging middlemen - investors who attempt to profit from buying low and selling high - to a canonical housing market search model. Flipping tends to take place in sluggish and tight, but not in moderate, markets. To follow is the possibility of multiple equilibria. In one equilibrium,...