OK, HERE IS ANOTHER UPDATE FOR THOSE OF YOU WHO ARE HAVING A HARD TIME SELLING. The number of calls we are getting asking about the rental market, made by people whose homes are on the market, is skyrocketing. In fact, we are having trouble keeping up! The funny thing is, THEY ARE RENTING AS FAST AS WE CAN LIST THEM!
Remember the resale market of yesteryear? The one where you put your home on the market at midnight and had multiple offers by 6:00 a.m. the next day? Well, the rental market isn't quite that good here in Santa Clarita, but its pretty dang close. Even the Antelope Valley is picking up!
HERE ARE A COUPLE OF EXAMPLES:
1) 2900 square feet in Alta Vista, 5+3, listed at $3100.00/mo. RENTED IN 6 DAYS for full price!
2) 3+2.5 in Fair Oaks, $2500.00/mo., RENTED IN 4 DAYS for full price!
Yes, those are both in June of 2007. It has been one of the best Junes to date. In fact, May wasn't bad either. Classic Property Management rented 13 homes in May and as of June 28, we had rented 8 homes in June for a total of 21 HOMES RENTED IN UNDER 60 DAYS!
WHY IS THIS HAPPENING? Here is my opinion:
1) Rising interest rates (this is limiting the ability to purchase, increasing the number of renters)
2) Sellers becoming renters (those few who can sell are then renting)
3) 100% financing is very difficult to get (again, limiting the ability to purchase, increasing the number of renters)
4) Consumer fear (buyers are scared of buying in a down market)
5) Foreclosures are on the rise (those living in the house being foreclosed on, whether tenants or owners, need a place to live)
I AM SURE THERE ARE MANY OTHER FACTORS, BUT I BELIEVE THESE ARE THE MAIN ONES. Do I have a crystal ball? No. Do I KNOW what the market is going to do? No. Can I take an educated guess? Yes.
JOHN'S RESALE MARKET PREDICTION (next 12 months): down
JOHN'S RENTAL MARKET PREDICTION (next 12 months): up
There you have it, my Santa Clarita Residential Real Estate Sales and Management Market Predictions. Go ahead, bookmark this and come back in 12 months to see how I did. I dare you. If you can't wait that long, and want to rent out that 2nd mortgage payment NOW, then click on the link below my slightly scary photo and call me!
We serve the owners of indiviually owned residential properties in the Santa Clarita, Antelope, and North San Fernando Valleys. If you own an investment property and don't want to manage it, call us!
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You hit the nail on the head. People got to live somewhere. This is a good time for investors looking for rental properties. You are right, that is a scary photo.
We are seeing a warming in the market here - the phones are starting to ring and email inquiries are increasing - this is a good thing
Ray, I agree. I am excited to see the investor pool of buyers start to make a comeback. That will be a good day for us.
Thesa, glad to hear it! Hopefully it lasts for you. You are in a great, growing, business friendly part of Oregon and I think you have a lot of room for appreciation when compared to other similar areas around the country.
Good post, we are seeing our rentals going QUICK down here in the valley as well.
Hey John, I didn't see "omniscience" listed in your areas of expertise section. You might want to update that... Oh and while all of those factors may influence the market in Santa Clarita, the reason the A.V. is gaining speed is because I am ROCKING IT!!
Jon, that is true. You are rocking it! I am excited to see the AV explode!
Joe good to hear! I am thinking of expanding into the SFV.