The Cromford Report provides us with very interesting and timely reports regarding the local sales and rental market – as always. It’s our goal to pass on this information to our clients. Whether you’re a landlord, tenant, prospective buyer, or seller, this news today should be of interest.
One of Michael Orr’s (founder of Cromford) most recent reports deals with the effect that the low supply and high demand for rental housing is currently forcing rent prices up. Overall rates for closed leases, he reports, are currently averaging 74.7 cents per SqFt over the past month. In 2013 for the exact same time of the year, the rental rates were 69.6 cents. This is an annual increase of 7.3%.
Active lease listings, which Orr says are skewed towards expensive homes because they stay active longer than cheaper ones is 86.4 cents. Last year it was 81.2 cents – an annual increase of 6.4%.
We knew that rent price increases were going to start happening considering that many prospective home buyers who are currently renters and who would normally be in the buying mode, are choosing to remain renters. Also, many who are renting are still doing so because they cannot qualify for a home loan due to poor credit from foreclosure, short sales or bankruptcies.
As long as rental supply remains low and demand high, consistent rent increases will continue. So not only will renters pay more, but will have less choice in the amount of inventory. With 30 year mortgage rates in the low 4% range, it makes a lot of sense for some to look at the buying market.
And remember, Jon and I are NACA certified to help you get that amazing low rate (high 3% range), with no down payment, no closing costs, and no mortgage insurance too. Just give us a call at 602-689-3100 to get started.
