The latest vacancy rates, 8% nationwide, reflect that the U.S. is a renter’s market. Rental vacancy rates are at a 30 year high, primarily due to the economy, but also due to competition from a wave of new supply that hit the market last year. The oversupply came from a lot of condo projects gone bad, that had to be converted into rental property.
If you are renting, now might be a good time to renegotiate your lease. Many landlords are offering enticements to tenants to renew.
Orange County is number seven on the list of biggest rent declines in the country, behind San Jose, Seattle, San Francisco, Las Vegas, New York and LA. Our decline in rental rates is just under 5%.
Thanks to falling home prices, and record low mortgage rates, it now costs less in most markets to own than over the last decade, on a mortgage-payment-to-rent-payment basis. Of course, this doesn’t take into account the down payment required for ownership.
Remember-- the Homebuyer Tax Credit currently expires in June of 2010, and must be under purchase contract by April 30th to qualify. I understand the State is considering a renewal of a statewide tax credit that may pick up the slack, at least here in California. That is, if they don’t run out of money like they did last time!
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