A new report from real estate data company RealtyTrac showed Arizona is the seventh most popular destination for house flipping in the U.S.

About 4.9 percent of homes purchased in Arizona are sold again within six months, which is higher than the national average, 3.7 percent.

"A market where house flipping numbers are relatively high indicates a market that’s in recovery mode, and usually coming off of a problematic market, but on the rise," said RealtyTrac Vice President Darren Blomquist. "That’s the most favorable situation for flippers, where they can get in and catch the wave going upward.”

While Arizona is one of the top house-flipping states, the industry is slowing down. At the end of 2012, the number of houses being flipped was nearly double what it is today, approaching 10 percent.

The average flipped house in the state was bought for just over $160,000 and sold for more than $210,000. That’s a 30 percent return on investment.