Inventory is down, prices are up! All is right in the world, particularly if you bought a home between 2010 and 2013. That bank-owned property or that short sale which you purchased at the low point in the market is now worth a lot more money than when you bought it.
How long will our inventory stay low? Will prices continue to climb? What about the shadow inventory? Are there a large number of homes occupied by people who aren’t making their mortgage payments or are we entirely clear of the distressed market? These are all great questions to ask and you will likely get 3 different answers if you asked 3 different people.
I can tell you this. Last month was the first month in the past 12 months in which our inventory actually increased. Mind you, the increase was just a tick, nothing significant. And that increase might have more to do with the fact that school was just about to start and people weren’t necessarily out looking for homes.
One interesting tidbit of information is that the number of cash transactions has decreased. That means that more people are buying homes to live in rather than investing in property and renting them out. That translates to less rentals on the market, which translates to lower rental supply and higher demand, which should ultimately translate to higher rent rates.
All of that is a lot to digest. The bottom line? This is a great time to sell and a great tie to invest in rental real estate. We are having great success in finding our clients and investors properties that are positive rental properties that can rent out very quickly.
Call me (Max) today at 702-434-4663. Let’s get your property on the market to sell or find you another great rental.