Rental Housing and Real Estate Market Trends for 2010
Posted on 06. Jan, 2010 by Marc Courtenay in Real Estate
If you thought 2009 was an unforgettable year for real estate, property managers and residents, wait till you see what unfolds in the year ahead. Here are two of the trends.
First and of least significance; when it comes to advertising properties for rent or for sale, the internet will become even more dominant over printed media. For a lot less money, property managers can saturate the internet with their listings. And it’s not the cost savings, it’s also how much can be accomplished.
When property owners and managers advertise on the web they can go into great detail, post many photos and even takes applications on a secure web site. Web sites that offer listings are seeing more traffic than ever. Property managers are also finding that social networking sites, like Facebook, can be another great channel to market vacancies. Here is an informative video interview, posted by RentVine.com, on the topic of advertising vacancies online (link).
The second mega-trend: The worst of the mortgage crisis is ahead of us. How do we know? Just look at the chart below which reflects the number of mortgages that are due for reset in the months ahead. Pay careful attention to the time-line below the chart.
The purple mountain on the left is the sub-prime crisis, which is behind us in 2007 and 2008. The mostly blue mountain on the right is the option-ARM crisis, a two- to three-year mess of resetting adjustable-rate mortgages that lies just around the next bend and could continue through 2012.
Recently I interviewed an individual who services and administers loans that have been sold to Fannie Mae and Freddie Mac. She asked to remain anonymous. She said that her department and the loan administrators at other lending institutions are being told to delay the foreclosure process until after the first of the year.
As one analyst and editor at investment publisher Stansberry Research recently wrote, “Right now, we’re sitting in the eye of this mortgage hurricane. When we hit the opposite wall early next year, the storm will become deadly all over again. It is safe to assume that a mountain of foreclosed properties will be hitting the markets over the next two years. Nobody can guess where the ‘bottom’ in real estate prices will be but it is apparently hasn’t arrived yet.”
There will be more displaced former homeowners looking for rentals than at any time in history. Perhaps that says it all.
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6 Responses to “Rental Housing and Real Estate Market Trends for 2010”
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Marc Courtenay: Thank you Aimee. That is an excellent article....
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Aimee Miller: Here's an interesting article with even more stats...
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john: The problem is not a lack of inspections, but a la...
Wilbur Sarkisian
04. Jul, 2010
Hello, great information! The real estate markets in Canada are still booming so if anyone is looking to capitalize, now is the time. Whether it be a house for yourself or an investment, keep your options open. Good luck to everyone! Thanks.
Real Estate
08. Jul, 2010
Have you ever considered adding more videos to your blog posts to keep the readers more entertained? I mean I just read through the entire article of yours and it was quite good but since I’m more of a visual learner,I found that to be more helpful well let me know how it turns out! I love what you guys are always up too. Such clever work and reporting! Keep up the great works guys I’ve added you guys to my blogroll. This is a great article thanks for sharing this informative information.. I will visit your blog regularly for some latest post.
Aimee Miller
13. Jul, 2010
We love video too – we will continue to find opportunities to add great videos to the site as well. Thanks for adding us to your blogroll (looks like you have some great content) and for saying such nice things about our site!
Marc Courtenay
13. Jul, 2010
These two comments make me feel so fortunate to be a contributor to this web site. Your suggestions and ideas are most helpful and I will pass them on. Regards and thanks, Marc
E
19. Nov, 2010
I am a property manager and my boss (owner) goes by the trends when he wonders why I am not getting as many renters as he thinks we should get. When I got here two years ago the economy crashed and the proprty was at 71% occupied. With notices still coming! I was able to bring it up to 99% within in 8 monhts. It was not easy. An outdated property with high rents. So I was doing my comparables and lowered the rent just a bit and recommended upgrades. It worked. However, every November and December and July the market slumps and it is slow.
He brings me statistical trends that major companies do and thinks that we should be the same; however the one flaw that I noticed is that these companies are combining each state together. Unfortuantely this gives inaccurate information. Example; The Bay Area in California has over 10 million people and not enough housing, whereas the central valley and we shall say Sacramento has over 1 million people and is overdeveloped with so many apartment and rental building including commercial buildings. The unemployment rate here is currently at 13% whereas the bay area is around 11%. I am not sure if these companies who do these trends take into the above referenced items into the calculation. It appears that many do not and it shows an unfair trend that can actually cost manager’s their jobs. Fact is that the housing market has been hit hard, and the rentals are renting but not at the accurate trend portrayed.
I recommend breaking down each county as the small cities and communites do not have the job growth as they do in the big cities.
Thank You
Marc Courtenay
19. Nov, 2010
Thanks for this excellent comment. I’m now going to think of the word “excellent” when I see your “E”. Seriously, your points are well taken and your recommendation will not be forgotten. In fact I’d like to quote you in my next article so many can benefit from your experience and observations.