The realestate market in my city has hit an all time high. Because of this the cost of rental houses has also gone up. The market is now balancing off and slowly starting to go down again. My question is, will the cost of rental places also start to go down or now that there has been a precident set, will they stay high?
The rental market should remain high because of the prices investors have paid recently for apartments. Long time owners have also raised rents because the market supported a raise. Rents won’t go down anytime soon, especially now that people can’t afford to buy homes once again.
Question for realestate agents.?
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The rental market should remain high because of the prices investors have paid recently for apartments. Long time owners have also raised rents because the market supported a raise. Rents won’t go down anytime soon, especially now that people can’t afford to buy homes once again.
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The rental house price, is set by the market. If they can keep the rent high, they will, if the market does not support it, then the owners will have to adjust the prices, depending what people are willing to pay. If the houses are not getting rented, then the prices will have to come down, if they want any tenants to rent there homes..ps-I am not a real estate agent..
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The cost will stay as it is, no rise in interest rate lately, the perception are the price of real estate will go up. The demand will go up.
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For those sellers who do not sell, some of those properties may turn into rentals, as more rental increase the supply side should increase and thus in theory the market should adjust downwards.
You may want to rent from month to month and watch where the market goes over 6 months.
The challenge for builders is the cost have not been decreasing and mortgage rates have been adjusting in small increments plus and minus.
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35 years as a landlord and 30 years as a Broker.
if people move out, lower population will cause a lower demand, then lower rent.
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economics
http://www.realtor.org, the association website has some good info in regards to the market prices of the homes fluctuating.
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mrtopprod is right. Many people unable to sell homes that they thought would turn a nice profit, are forced to rent them in order to come out with any money. More rentals will bring more competition and lower rents. Depends alot on what area you live in. My belief is that you will start to see some lower rents especially in single family homes and condos.
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Former real estate agent and current landlord
I could give you statistics that will make hair grow on the bottom of your feet but I’m simply going to tell you that everything will start looking super rosy until after the elections then hide.
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The prices of purchases are not strongly correlated with the prices of rentals. What’s the vacancy factor for rentals in your area? Does monthly rent cover the mortgage? These are the questions to ask.
Here locally, I’ve been prediciting rising rents for several months now, and last week I had the first confirmation that it is, in fact, happening, despite the fact that the average sales price has fallen by about 20% from peak.
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Loan Officer and Realtor in San Diego. Website http://www.danmelson.com