Preparing for Homeownership

Homeownership comes with a long list of benefits and rewards, but it also carries a healthy dose of responsibility. Misjudging or exceeding your financial limitations can have far-reaching effects. You need look no further than foreclosure rates across the nation in the past half a decade to understand the gravity of buying within your means and being cautious about purchasing a home. According to RealtyTrac.com 1 in every 230 houses is in foreclosure. Distressed home sales still account for around 1/3 of all home sales. This is years after the 2009 recession. Preparation for homeownership is prudent and advisable. You should follow some expert tips to get started. First, have a frank conversation with yourself or your significant other about how much home you can truly afford. You should take into consideration a wide range of scenarios. What if one of you loses your job? What if you become disabled? How long are you planning on living in this area? You should also calculate the costs of homeownership -- the real costs. You will need to consider closing costs, homeowners insurance, maintenance and repairs, and even decorating costs. Next, assess the status of your credit report and score. Identity theft runs rampant today. You should make sure that everything on your report is accurate. You should also take a gander at your score. This will give you a good idea what sort of rate you may qualify for. The higher the score the better the rate. In a final step of groundwork, you should speak to a bank or lender about getting pre-qualified and then pre-approved. Pre-qualified means that the lender is willing to write you a loan. Pre-approval gives you a more exacting budget and proves to a seller that you mean business. Get your paperwork in order for this step. You'll need W-2's, paystubs, and other financial documents. Once you've established what your home buying budget will be and what you need to do to improve your credit score, you should start the noble task of saving. It is likely you'll need a large down payment (around 20 percent of the total purchase price) in today's market. Begin your savings journey by developing a monthly spending budget. Decide how much money you can transfer each month to a savings account and then watch the balance grow. Finally, start dreaming. Searching for the perfect home can be a tiring task. There are many different kinds of housing. Which is the right fit for you? What amenities are a must and what can you do without? Are you interested in specific neighborhoods or school districts? Buying a home can be a dream come true....just do your legwork to ensure you make a solid financial decision along the way.

Written by Carla Hill

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Rental Increases Should Prompt More Home Buying Moves

Rents are still going through the roof, just not as quickly. Rents were up for the third consecutive year in 2012, when they rose a bit slower than in 2011, but forecasts call for rent increases in 2013 to match 2012's increases, according to MPF Research. That puts more pressure on housing consumers to buy and lock in housing costs to beat both the rising cost of rent and the growing costs of owning a home. Buyers who move now can still enjoy record low interest rates, distressed property bargains and relatively affordable home prices. However, most renter movement in the apartment sector consists of households opting for one apartment over another. Loss of renters to the owner-occupied housing market sector is having only a very small impact on apartment sector fundamentals, according to MPF Research. "While the number of apartment renters opting to buy is rising a little, it remains far below the levels apartment operators were accustomed to prior to the recession," said Greg Willett, MPF Research vice president. "Families that have been renting single-family homes, rather than apartments, comprise a big portion of the first wave of homebuyers seen in the cycle. By far the biggest component of the apartment resident base, particularly within large urban areas, consists of young singles living alone or young-couple households. Single-family homes just aren’t the right housing option for many of them, regardless of shifts in the pricing relationship," Willett added. MPF Research said apartment rents climbed 3.0 percent in 2012, down from 4.8 percent in 2011, but a bit above the long-term norm of 2.5 percent recorded during the past two decades. An increase of 3.0 percent is similar to the average results posted during shorter past periods when occupancy was sustained at strong and generally stable levels, according to MPF Research. Those shorter periods of annual price increases of 3.0 percent came in 2005 through the middle of 2008, and earlier in the middle to late 1990s. Among large individual metros, top markets include three San Francisco Bay Area markets - San Francisco, San Jose and Oakland - where rents rose 8 percent, 7.7 percent and 7.1 percent, respectively. Other top rent increases were in the Denver-Boulder area where rents rose 5.9 percent in 2012; 5.1 percent in Nashville and New York; 4.8 percent in Houston; 4.6 percent in Charlotte; 4.4 percent in Portland and 4.3 percent in the Seattle-Tacoma area. MPF also said property owners and operators didn't push as hard for higher rents in 2012 as they did a year or more ago. They'd rather hold onto existing tenants. "Many on the operations side of the apartment industry have focused on sustaining their very tight occupancy levels during a period when job growth and new household formation have been fairly sluggish at the same time that renter movement has begun to inch up from the unusually low levels experienced in the previous few years," Willet said. The average apartment occupancy rate of 94.9 percent at the end of 2012, was up a tiny bit from 94.7 percent at the end of 2011. The rate was 92 percent in 2009, when the nation's apartment occupancy rate bottomed, MPF reported. MPF says look for 2013's rental market performance to be similar to the strong 2012 marlet. "Most places are starved for new product right now, so properties that will complete over the coming year appear likely to do incredibly well, generally without hurting the results for the existing stock," Willett said.

Written by Broderick PerkinsJanuary 24, 2013

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Top Reasons to Own a Home

Buyers all across the nation are making their dreams come true. They’re signing on the dotted line and grabbing hold of the keys to a family home. Despite record low interest rates and enticing pricing, many potential buyers are delaying the decision to buy. What’s keeping you on the sidelines? Let’s take a look at the top reasons to own a home.

Building equity. Writing a check to the landlord is equivalent to lining their pocket with your potential equity. It is money you never get back. You’re paying for a finite amount of time -- one month, one year, etc. Owning your own home means building equity. Each and every mortgage payment is going towards paying down a principal. The worth of your home, however, should continue to gain. The difference between what you owe and the value of your home is equity.

Predictability. Gas and grocery prices may rise, especially in the midst of this Summer’s tremendous drought in the American heartland, but a fixed rate mortgage is as predictable as they come. Your mortgage payment will be X amount for the life of the loan.

Tax Breaks. Uncle Sam likes homeowners! Did you know that you can deduct the interest you pay each year on your home loan? You can deduct the cost of your property taxes. Even making energy-efficient upgrades can be tax deductible.

Appreciation. Home prices are once again on the rise, up nearly 10 percent over 2011 prices. This means a home bought for $100,000 in 2011 could now be worth around $110,000! Over the years (real estate is a long-term investment) your home should gain value. If you decide to sell, you would be looking at a healthy profit! According to the National Association of Realtors (NAR), "The number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing."

Social Benefits. We’ve talked about the financial benefits of owning a home, but did you know that homeowners generally rate themselves as happier and healthier than their renting counterparts. Part of this is thanks to the stability that homeownership brings. Neighbors are more permanent fixtures in your life, meaning friendships that last for years to come. Children of homeowners are more likely to graduate high school and less likely to experience teen pregnancy. It’s all about creating a stable environment for the whole family. Homeownership can be a great way to secure future financial security and freedom. So, what’s stopping you from getting into the market? This big purchase comes with lots of perks and there’s never been a better time to buy.

Written by Carla Hill

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

  

 

Buying Beats Renting

Are you staying put for at least three years? Savvy financial experts recommend you buy versus rent! A new analysis by Zillow, a real estate information marketplace, providing vital information about homes, real estate listings and mortgages, reveals that the "break-even horizon" in more than 200 metros and 7,500 U.S. cities is three years (or less!). This is great news for wary buyers who have been fearful of declining home values in many cities. These hard-hit cities are making a come back. The report found that in some of these areas the break-even horizon was less than two years! "Across most of the country, historic levels of affordability make buying a home a better decision than ever, especially considering rents have risen more than 5 percent over the past year," said Stan Humphries, Zillow Chief Economist. "This is the first analysis of metros and cities that presents the buy versus rent decision in an intuitive way, by telling consumers how long they must live in the home before buying breaks even with renting financially. It's much more understandable, and therefore useful, than the abstract notion of a simple ratio of prices to rents. If we want consumers to act on market information, we have to align it with how they think about the issue and make it straight-forward to grasp." This analysis took into account the full picture of homeownership: downpayment, mortgage, transaction costs, property taxes, utilities, maintenance, tax deductions, and adjustments for inflation and forecasted home values. It also figured rental payments, utilities, and rental price appreciation. This sunny outlook is not the case in all areas, however. A local real estate professional should be able to tell you the course of your local market and whether or not home values are once again on the rise. There may even be differences from one local community to the next. For example, in Mill Valley, Calif., just north of San Francisco, a homeowner can break even after 8.8 years, while in similarly-priced Menlo Park, south of the city, they must live in the home for 14.1 years. It all depends on the area. The Miami-Ft. Lauderdale metro is among the most favorable for buying, with homeowners breaking even after only 1.6 years of living in the home. However, in the San Jose metro, where home values are among the highest in the nation, a buyer must commit to living in their home for 8.3 years before they will break even. Zillow reports "Metros where it takes more than five years to reach the breakeven point accounted for 7 percent of the 224 metros covered by the report. The metros with the longest breakeven horizons are San Jose, Calif. (8.3 years), Oak Harbor, Wash. (7.2 years), Santa Cruz, Calif. (7.1 years), San Luis Obispo, Calif. (6.3 years) and Salinas, Calif. (6.3 years). The metros with the shortest breakeven horizon are Memphis, Tenn., Miami-Ft. Lauderdale, Fla., Salisbury, Md., Red Bluff, Calif., Mobile, Ala., Tampa, Fla. and Fernley, Nev. (all tied at 1.6 years)."

Written by Carla Hill

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

The Benefits of Owning a Home

We all know the social benefits of owning a home. Homeownership gives family stability, creates lower high school dropout rates, and of course gives the opportunity to create meaningful and lasting relationships. In addition to these great pluses, owning a home can be your largest financial asset. First, you'll have access to homeowner tax breaks, which include the mortgage interest deduction (MID), property tax deduction, and credits for green-friendly updates to your home. What all of these deductions mean is you can save money on your taxes each year. That's money back in your pocket. Additionally, the eco updates you do will save you money in the long run on operating costs of the house. Some of these great updates can include energy efficient windows and doors, and solar panels. You may have heard that real estate is a good investment. You may also be wondering if that is still true when home values are declining. The truth is that real estate has always been a good “long-term” investment. The fact that many people were making bank by buying and selling real estate in the mid-2000's was more of a fluke than the norm. Twenty to fifty percent appreciation rates are not the norm. In general, during healthy economic times, appreciation averages four to six percent. The National Association of Realtors (NAR) reports that from 1972 to 2005 appreciation averaged 6.5 percent. Today's home prices are still declining, but financial experts predict this will abate in the next year or so and yearly appreciation rates will return. As you begin to see appreciation, you'll start to earn equity. This is one of the biggest advantages homeownership has over renting. Renting means paying money to the landlord. Once that rent check is written that money is gone. As you pay your monthly mortgage payment you're building equity. You will one day soon owe less than the home is worth. The difference in between is equity. Homeownership also gives you a certain financial freedom and stability. You can take out a home equity loan for improvements or if you need some cash. You can sell your home down the road and use those profits towards retirement, a dream home, or even a dream vacation. Homeownership is a great way to introduce long term stability to your life, even in uncertain economic times. Today's historically low interest rates and low prices mean now is a great time to make an investment in your future.

Published by Realty Times, Written by Carla Hill

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Don't Let House-Hunting Break Your Heart

This time of year love is on the minds of many. For those who are house-hunting, it can be a whirlwind romance that's hot from the minute you see the home's curb appeal. But don't let the seduction of a good-looking landscape make you want to tie the knot without a bit of courtship. House-hunting for the "perfect" home in many ways is like looking for that perfect romance - very seldom does everything about your proposed mate match your desires. Things you love at first may later get on your nerves and become what you don't like so much later on. Does that mean the house is wrong for you? Not necessarily. It could be, but if you understand your tolerance level–what's most important to you in a home, and what you can't deal with at all - you are less likely to want to buy the wrong home. Keeping these terms clearly defined and always on your mind will help you make smart choices even when some areas of the home tug at your heartstrings and say "buy me!". House-hunting should be like dating. Take your time. Understand the critical must-haves, the not-so-important-but-I-kind-of-want-it, and the no-way, not-going-to-happen-in-this-lifetime. One thing you can do to help streamline the process is to start making a list about the things you like about your current home. If you're renting, there may be features about the home, apartment, or planned-living development that you want to find again in the neighborhood where you're going to buy your home. For instance, you might want a gated community or a townhouse that has certain luxury amenities. Moving to an isolated home that doesn't have the same type of amenities could be a real turn-off. Also, it might mean you have to pay more to get those same amenities that used to come with your rent. While this might not be a deal-breaker, it can certainly change the way you're used to living your life. So, be sure to take it into consideration. Walking a short distance down the street to go to the gym, the pool, the steam room will be different from having to drive 20 minutes or more to go to a gym/spa that you also have to first pay an extra monthly membership. Another thing to consider is how many times you've seen the home. Just like dating, you might have an instant attraction, but the more times you see your date, the more you discover. With a home, (just like with a prospective mate!) you need to see it a few times and at different times of the day. This way you'll discover which rooms are dark and when or how loud the traffic is during rush hour. You might notice that there's a lot of commotion around the neighborhood because of nearby schools. Does this work with your lifestyle? Viewing a home and the surrounding neighborhood at various times of the day can be an eye-opener and can reveal just how much this home is a match with your lifestyle. Just as you wrote down the things you like in your present residence, you should also make lists of things you want to avoid in the future and new things you hope to gain. Remember, courtship doesn't have to last forever. Just as with romance, "the good ones will be gone if you wait too long!" So put a ring on... or rather, put an offer on that house!

Published by Realty Times, Written by Phoebe Chongchua

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Make Your Open House Memorable

With spring around the corner, open house season will soon be upon us. If you've listed your home for sale, you've probably already worked on making small repairs, de-cluttering, and generally sprucing up your home. Now is the time to start thinking about whether you want to hold an open house. And if the answer is yes, here are a few secrets to having the best open house in town:

Stage your home for viewing. Since you have plenty of time to get ready for the day, take the time to artfully arrange your furnishings and belongings in an appealing manner. Remember that prospective homebuyers will have license to peek into your closets and cupboards, so make sure that they're well organized and give a sense of spaciousness. For an added touch, buy some fresh flowers and put them out. Leave fluffy towels and pretty soaps out in the bathrooms. And the smell of freshly baked cookies is always appealing.

Promote your home in as many ways as you can. Make sure that your open house is listed in local publications. Put up signs around the neighborhood and make sure that you don't forget to hang some in high-traffic areas and intersections with arrows pointing the way to your door. Hand out flyers - some local businesses will let you leave literature in their lobbies. And don't forget about the Internet. Make sure you put the word out over email to your friends and let people know on Facebook. Your real estate agent can help you promote your event.

Keep a log of the people who stop by. Since your real estate agent will be hosting the event, let him or her know you'd like to keep track of visitors for follow-up. It's easy to keep a log of the visitors who come by and their contact information. A simple sheet of paper will do, but a nice log book might add a touch of class. Ask your agent for help with this.

Clean and sterilize your home until it sparkles and shines. You can play up natural lighting with spotless windows, while gleaming floors will make your home seem like new. Pay special attention to the kitchen and bathrooms. And don't forget to clean up the yard. Winter can be hard on a home, and you want your lawn to be free of debris and looking tidy for a good first impression.

Remove your pets and children - and yourself! - for the duration. Your real estate agent can handle giving tours, and potential homebuyers will feel more at ease asking questions and expressing their impressions if you are not there. Holding an open house is a great way to get a lot of eyes on your property at once. Since it's more informal than a private showing, some people feel more comfortable dropping by without making too much of a commitment. And if just one of those visitors falls in love with your home, you'll be well on your way to a sale.

Published: February 6, 2013 By Realty Times, Written by Susie Shortsleeve

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
 

30-Year Fixed-Rate Mortgage Averages 3.40 Percent

In Freddie Mac's results of its Primary Mortgage Market Survey®, fixed mortgage rates moved higher following December's employment report. The 30-year fixed averaged 3.40 percent, its highest reading in eight weeks. The all-time record low for the average 30-year fixed was 3.31 percent set November 21, 2012.

30-year fixed-rate mortgage (FRM) averaged 3.40 percent with an average 0.7 point for the week ending January 10, 2013, up from last week when it averaged 3.34 percent. Last year at this time, the 30-year FRM averaged 3.89 percent.

15-year FRM this week averaged 2.66 percent with an average 0.7 point, up from last week when it averaged 2.64 percent. A year ago at this time, the 15-year FRM averaged 3.16 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.67 percent this week with an average 0.6 point, down from last week when it averaged 2.71 percent. A year ago, the 5-year ARM averaged 2.82 percent.

1-year Treasury-indexed ARM averaged 2.60 percent this week with an average 0.5 point, up from last week when it averaged 2.57. At this time last year, the 1-year ARM averaged 2.76 percent. According to Frank Nothaft, vice president and chief economist, Freddie Mac:

"Fixed mortgage rates increased slightly following a positive employment report for December. The economy added 155,000 jobs, above the consensus market forecast, and November's job growth was revised upward by another 24,000 workers. This helped keep the unemployment rate steady at 7.8 percent, the lowest since December 2008. For all of 2012, 1.86 million jobs were created and represented the largest annual gain since 2006."

January 11, 2013, Published by Realty Times

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Preserving the Mortgage Interest Deduction

In a time when the U.S. government is looking for tax hikes and ways to cut back and reduce the federal deficit of $16 trillion, the homeowners' mortgage interest deduction is on the chopping block. While the whole deduction might not be scrapped, modifications and limitations to it could affect many homeowners.  According to the Christian Science Monitor/TIPP survey, Americans would rather lose the charitable giving tax deduction than the mortgage interest deduction. The National Association of Realtors (NAR) reports that's because it's a middle class key incentive that helps Americans build wealth. Suggestions from economists range from implementing an overall cap on itemized deductions, to eventually having a flat credit for the mortgage interest deduction. Other ideas include capping the amount of the deduction, say, at $500,000 instead of $1 million "or the rate at which mortgage interest deducted would be lower than the top marginal tax rate," said Jed Kolko Chief Economist of Trulia.com. A complete abolishment of the mortgage interest deduction "could greatly destabilize the economy," says Dr. Lawrence Yun, NAR Chief Economist.  Approximately half of the amount of tax deductions taken by Americans are housing- related. Homeowners who haven't paid down a lot of principal will be hurt the most. Millions of Americans take a tax deduction that can amount to anywhere from an average of thousands of dollars to tens of thousands of dollars per year thanks to the mortgage interest deduction.  Those in favor of reducing or eliminating the mortgage interest deduction claim that it could save the federal government $108 billion annually. Some argue that the mortgage interest deduction is not used by many. New research by USA Today showed that in 2010 only 26 percent of homeowners countrywide used the deduction on their taxes and wrote off their interest paid on their mortgage. However, the study points out that not all taxpayers can use this deduction. It's "only available to those who itemize deductions." A taxpayer's mortgage interest, charitable giving, and other expenses need to be greater than the standard deduction offered.  Expensive housing states like California, Washington, Hawaii, Virginia, Maryland, and Nevada would feel the pinch. Those states can see on average a tax break from the mortgage interest deduction alone of about $12,000 a year per taxpayer which is over the standard deduction for a married couple, filing jointly in 2012 ($11,900).  Many believe that if the mortgage interest deduction is modified or eliminated it will send the real estate market into a tailspin and cause the progress that the market has made to shrink. Opponents also believe this will hurt future buyers who are currently renting.  The National Association of Home Builders says that 73 percent of those it surveyed are opposed to any changes in the mortgage interest deduction. The California Association of Realtors found that 79 percent of buyers listed the mortgage interest deduction as extremely important when it comes to deciding if they'll purchase a home.


Written by Phoebe Chongchua
December 14, 2012
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Mortgage Rates Low, Tips To Qualify

Mortgage rates continue to remain low despite a recent slight increase. The 30-year fixed rate increased just a bit at the end of November but that comes on the heels of setting a record low of 3.31 percent. The 30-year fixed rate is still lower than it was this time last year, when it was at 4 percent. While many people are taking advantage of the low rates and either refinancing or shopping for a home, some are finding it difficult to qualify. The tightening of credit and the increased lending restrictions have made the effort to get a new mortgage a headache for some. The good news is there are tips to help you qualify for a mortgage. Here are a few that you should consider before you head to the bank or a mortgage company. Get your finances in order. Know your financial situation. That means not only your income, spending, debt, but also your credit status. In a downturned economy many crooks are looking for ways to make a buck and they're coming up with more scams that can negatively affect your credit. Debit and credit card skimming is one way that thieves are stealing credit card numbers and then charging up expenses on the stolen account. Even if you never lost your credit/debit card, that doesn't mean you're safe. It can happen when you use the card at a store, restaurant, or other retail outlet. If your bank is on the ball, it will alert you, maybe even before you realize your card has been compromised. This is why credit reports can offer valuable information before you apply for a mortgage. Getting your credit report and reviewing it carefully provides you with the opportunity to see if there are errors or problems that need correcting. Reduce your debt. This is a tough one. A lot of people are refinancing because they're hoping to get funds back to help them do this very thing, lower their expenses and reduce what they owe. However, if you carry a high debt, you'll have trouble refinancing or getting a mortgage to buy a home. The optimal thing to do is to start conserving and looking for ways to save. It's not about how much you make, but how much you save that can help you find ways to reduce your debt. Look for expenses to cut. Many people are opting to no longer use phone landlines or even cable. If you're working a lot and you don't watch much TV, cut the line. News and other features you watch on TV can also be accessed online on your computer. Keep only what's necessary. Sustainable living and conservation are becoming very popular. Check with your local utility company to see how you can reduce power usage in your home. Start by unplugging electrical appliances that aren't in use. These appliances, when plugged into an electrical outlet and even though not in use, use electricity which translates to you having to pay more on your utility bill for energy you're not even using. Get educated. The loan terms and restrictions change all the time. Meet with qualified expert professionals to help you through the process. Just because you don't qualify today doesn't mean it will always be that way. Find out what you need and can do and start moving toward your goal. Sometimes the best thing you can do is gain knowledge. The information that you get from real estate professionals will allow you to develop a plan to achieve success. Don't give up. The difficult economy has been discouraging but situations change and more opportunity will come. Be patient. Seek advice. Stay informed. Follow your plan, even if at first it seems like a long-shot before you'll get your goal.



Written by Phoebe Chongchua
December 7, 2012
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Rents Hit Ceiling As More Renters Become Buyers

With more and more households fed up with the rising cost of rent and with homeownership often more affordable on a month-to-month basis, rents hit a wall in the fourth quarter last year. On the heels of MPF Research's report earlier this month that said rent increases fell last year compared to 2011, RealFacts also says the skyrocketing rent trend is coming to an end. RealFacts' database consists of 3,300,000 rental units, in more than 13,000 properties located in 96 metropolitan statistical areas in 14 states. The properties include apartment rentals from studio-size to townhomes in complexes of 50 or more. The rental data cruncher said the national average rent increased by $21 a month to $1,209 in the second quarter of 2012. Landlords tacked on another $13 a month average increase in the third quarter. However, in the fourth quarter of 2012, rents simply stopped growing, actually dropping an average $2 a month to $1,040 a month. "What has changed in the past quarter? Demand for single-family housing. Statistics confirm a more robust for-sale housing market is now emerging, recovering from its long hiatus," said says Sarah Bridge, founder and managing member of RealFacts LLC. Bridge added, "Where there was once a bloated inventory of houses for sale with many homeowners losing homes to foreclosures or opting for a short sale to avoid foreclosure, new listings are now fewer and far between. Combined with the short supply are record low interest rates currently hovering at around 3 to 3.5 percent." What's more, metropolitan areas that experienced the highest rent growth are now becoming centers of housing recovery.
"How we confirm that rents have hit the wall is by examining primary market leaders of the recent past like San Francisco (rents up 8.8 percent on the year) and San Jose (rents up 9.3 percent on the year). For the past several quarters, those market leaders have experienced a slight but consistent decrease in occupancy rates, which is an early indicator of rents falling," Bridge said. "RealFacts made its prediction that San Jose and San Francisco would peak in early 2013, but it appears this has already happened in the fourth quarter of 2012," she added. Other recovering for-sale housing markets with soaring rents include, Boulder, CO where rents rose nearly 11 percent on the year; Charlotte, NC, up 8.4 percent; Seattle, WA, rents up 7.8 percent; Greensboro, NC, up 7 percent; Denver, CO, up 6.7 percent; Salt Lake City, UT, up 5.9 percent; Austin and Houston, TX, up 5.7 percent and 5.5 percent, respectively, according to RealFacts. Less room for rental growth is the general trend, but there are exceptions. Fourth quarter rents also rose in Miami, FL; Greensboro-High Point, NC; Bakersfield, CA and Atlanta, GA. Occupancy rates show mixed results with half the markets on the rise and half on the decline. "We may see increased occupancy in the near future as rents are priced at sustainable levels, or we may see vacancy on the rise if a glut of new construction hits a market all at once," Bridge said.

Written by Broderick PerkinsJanuary 31, 2013

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com