Quote:
Originally Posted by ceskykrumlov
So would that mean that there will be more rentals available if fewer people are selling and buying?
|
I think what ponnytrekker is saying--which I agree with--is that all those people who would like to sell (to get more space, a better school, more yard, etc) but who don't need to are simply staying put and waiting until the market stabilizes. And all those people who would like to buy but don't need to are also waiting. That will not increase the number of rentals on the market at all. But what will--and has--increase the number of rentals are those people who really need to sell but can't. People who already bought and now have 2 mortgages but who can't sell (or can't sell for "enough") will rent out their houses in order to cover their expenses.
As for the future of the market, that really depends on the economy. If this is the beginning of a long and deep recession (or depression) then prices should continue to drop and then remain low--and interest rates should remain low too. If this turns out to be a relatively mild recession then I imagine prices will stabilize and then increase again. And I imagine interest rates will then increase as well.
I also think it depends on the specific market. Prices in some areas of Westchester have already dropped a great deal--I see asking prices being cut by 20% in many cases and houses selling for that much below asking. In those areas, prices seem to be back to 2003/2004 levels and therefore seem primed to increase as soon as things stabilize. Prices in other markets have barely decreased at all and are still greatly inflated--I'd expect prices in those areas to keep dropping for awhile.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
