Falling rents and downward momentum
Not long ago the housing talk was about a slow-down in sales and an increase in housing stock. Then came 3%, then 4%, then 6% decreases in prices from some areas of the country.
These were the topics that had our attention just yesterday.
Now the popular topic is foreclosures. Did anyone not see this coming?
Soon other topics will become the subjects of our blogs; vacancy rates and tightening of credit standards for instance.
Some people believe that as former home owners and those people forced into foreclosure join the bubble sitters in the rental pool, rents are bound to rise. It could happen.
The larger question however is over-building. It is taking place in every corner of the U.S. Couple this with speculators who hold an estimated 30 to 40% of residential real estate. Ad in just now retiring baby-boomers, a group estimated to hold 25% of residential R/E primed to sell to fund their second childhoods and you have a very large potential pool of homes entering the market.
Also consider properties that will be foreclosed on. There is a good chance they will be sold cheap to investors and become rentals. At the very least these will put downward pressure on home prices in their respective neighborhoods causing some owners to shelve their plans to sell and rent their properties out instead.
I think the most likely path is downward pressure on rents. With condo and condo-conversions at record levels and R/E sales flagging, current rental properties will continue to be rental properties and condos that don’t sell will most likely join that pool of rentals. I see an oversupply of rental units developing and lower rents in the near future.
Vern.
These were the topics that had our attention just yesterday.
Now the popular topic is foreclosures. Did anyone not see this coming?
Soon other topics will become the subjects of our blogs; vacancy rates and tightening of credit standards for instance.
Some people believe that as former home owners and those people forced into foreclosure join the bubble sitters in the rental pool, rents are bound to rise. It could happen.
The larger question however is over-building. It is taking place in every corner of the U.S. Couple this with speculators who hold an estimated 30 to 40% of residential real estate. Ad in just now retiring baby-boomers, a group estimated to hold 25% of residential R/E primed to sell to fund their second childhoods and you have a very large potential pool of homes entering the market.
Also consider properties that will be foreclosed on. There is a good chance they will be sold cheap to investors and become rentals. At the very least these will put downward pressure on home prices in their respective neighborhoods causing some owners to shelve their plans to sell and rent their properties out instead.
I think the most likely path is downward pressure on rents. With condo and condo-conversions at record levels and R/E sales flagging, current rental properties will continue to be rental properties and condos that don’t sell will most likely join that pool of rentals. I see an oversupply of rental units developing and lower rents in the near future.
Vern.
posted by Vern Wichers at 10:19 AM
3 Comments:
[color=#58a]Consumer Alert!
Fake enhancement pills have now flooded the market. A recent study has shown that as much as 90% of male enhancement pill sites out there are selling cheap knockoff versions of the
original product! Don't be fooled by flashy websites either or fabricated testimonials either!
Advanced Gain Pro is the real deal- real ingredients, real guarantee, real results! AGP pills have been proven to work, and use only the highest quality ingredients available anywhere.
Here are just a few of the thousands of positive responses we have gotten recently:
"I have been using Advanced Gain Pro for 3 months now and I must say I'm simply amazed. I really didn't think the product would have this many benefits. I really only purchased the pills to help the reliability of my erections. But to my surprise every aspect of my penis and sex life has improved. I have larger, harder erections easily, and I can really satisfy my girlfriend fully now."
Dexter, Chicago
Don't wait any longer, join the millions of men already benefiting from using Advanced Gain Pro. Why be average when you can be the elite?
Visit site for more info:[/color] [url=http://www.advancedgainpropenispills.com/order.php]advanced penis enhancement pills[/url]
Hey men, check out this sweet site I found, I wasn't sure if it was real at first, but it is! I tried it out and these alternative to penis surgery awesome!!!
Check out the special discounts they have too, I got a real good deal.
Later!
More info on the site: [url=http://www.orderpenisextender.com/order.php]penis surgery alternative[/url]
P.S. Sorry for posting in "this" category. Please move my topic to an appropriate forum.
[color=#58a] Hi, I'm big fan of Classical music.
I have more than 1000 mp3's on my iPod and always searching for more :-).
What mp3 sites do you know, where i can download [/color] [url=http://www.topsecretmp3.com/?page=artistbygenre&gid=21]Classical songs[/url][color=#58a]?
P.S. Sorry for posting in "this", but I haven't found a better category for my post.[/color]
Post a Comment
<< Home