Watch those rents....

Hi Barbara - The balance is shifting rapidly towards owning.  Right now - with deductions and being conservative - owning is a hair less expensive if you buy the same unit.  But one of the real issues for entry level people is that most rentals are in luxury condos or luxury apartment buildings.  That makes renting really expensive.  They could buy a more modest coop and do MUCH BETTER.  But coops generally do not permit renting - so getting into that type of housing that is nice but generally older with fewer amenities and CHEAPER is much harder as a renter.  So if a buyer was willing to give up the 24 hour doorman and the laundry in the unit and the gym on site....which no one truly NEEDS.  Then buying is now a good deal less expensive.  So if you want the amenities - its a wash - but if you are willing to give up just a little, you have a less expense, tax deductions and a great space and equity... Also - rents aren't going to stay where they are - they are going UP.. while condo prices and coop prices might be edging up - they aren't going to take off like a rocket.  So soon it really will be cheaper to own - ALL THE WAY AROUND.

Hi Wallace - there is some of that activity around here - but most of the investors I have worked with are investor wanna-be's who want it all for a song.  We are at or very near the bottom -  the trends are unmistakable.  The upper end is already going up and FINALLY  inventory is starting to be absorbed at the bottom.  But it is still very slow.

Hi Debbie - Why doesn't he list it?  It will be gone faster - yes he has to pay one months rent - not the end of the world.

Hi Marie - People need to get off the fence.  I'm still seeing cold feet everywhere on the buying side - to the point of insanity.  Exactly how affordable does it have to get?  Do we have to go to affordability levels in the 1930's to get us there?  This is now - officially - irrational.  Once those higher rents start to "SINK IN" renters will either be priced out or have to make a move towards ownership.  When I first started, it wasn't just the boom that spurred ownership - it was high rents that were increasing rapidly....

Hi Ann  A- that's really sad.  I would hope that landlords are not taking advantage of these poeple ...though I wouldn't count on it.

Hi Ann H - I think its a general trend. It makes sense.  A lot of people sitting out the market.

I'm STUNNED Laurie.... I know that your devotion to the way NY practices and Long Island real estate makes moving to CO unthinkable! I do think that this will force the hands of a lot of fence sitters. 

So many buyers will NOT get off the dime. I've been waiting for buyers to make an offer on a house I know they LOVE for a week.  No offer.  I've tried calling, emailing, cajooling. The price was lowered again and it is such a gorgeous deal its killing me. Not something that they can easily duplicate either.  Waiting is accomplishing nothing - all they are doing is losing.  What they aren't understanding is that right now they can live cheaper in that house then they can rent a 2 BR 1050 sf condo a few blocks away.  Yet another buyer with ice cold feet for no good reason.  Getting an offer to stick with these waffling buyers is like trying to nail jello to a wall. 

Frankly - we need something like this to scare them off the fence.  Buyers have become to cocky and unpredictible and this is no longer making any kind of practical sense. They should be taking advantage of this market and instead they are playing games....  At this rate of shortage - payback from Landlords that had been renting out units at  a net LOSS for about 3 years is going to be a bitch.  They are going to be jacking up very fast and furious now. Many will be priced out  of their current rentals - and they could have bought in the wonderful buyers market.... with super low rates...but noooooo.