Tempers Flair, Temperatures Rise, Rentals Vanish Before Our Eyes
The rental market is hot, hot, hot in Annapolis Maryland. Yesterday the thermometer in the car said the temperature was around 90 degrees. It had been seasonable cooler earlier in the week, but, has now turned hot and muggy for this time in June. Testy tenants and temperamental listing agents along with unseasonably warm and muggy temperatures have conspired to make for a fenzied rental market in Annapolis Maryland.
Some Background
I had a call from a prospect tenant on Sunday looking for a rental property in Annapolis. There were two homes that he had picked out to see later in the week. I checked the status of them and both were "active" in the MLS. I offered to show them to him on either Monday evening or Thursday evening. He elected to wait until Thursday.
On Monday one of the properties was flagged "application registered", so that property was essentially all but rented. I let him know that there would be just the one property to look at on Thursday. In getting ready for the showing on Thursday for the other rental, I was checking the MLS and found that property had also now been marked "application registered".
So, like I did with the first property, I emailed the listing agent on the second property about the status. Not really to my surprise it has already got an application and is essentially a "done deal" too. So not wanting to to waste the tenant's time looking at something that is essentially all but rented I emailed him to let him know that I wouldn't be showing him that property either.
The rental market favors landlords right now and the early bird gets the worm, or as in this case, can make application and go to lease ahead of everyone else. So just what's driving the demand for rentals in Annapolis Maryland?
So Just What's Going On?
In May of 2009 the average sales price of a home in Annapolis Marylandwas $454,672. By May of 2010 the average sales price had fallen to $434,562, down 5.28% from 2009. For May this year, the average sales price of a home in Annapolis is $439.827, down 6.25% from 2010.
In May of 2009 the annual rental rate for a home in Annapolis Marylandwas $21,516. By May of 2010 the average annual rental rental was essentially all but unchanged at $21,648. In May of 2011 the average annual rental jumped to $23,280, up 5.77% from 2009.
So, the average sales price has declined while the average cost to rent has increased in Annapolis Maryland. There are 818 homes for sale in Annapolis and only 85 homes sold in May 2011. That translates into 9.6 months of inventor, that is to say, it will take nearly ten months to sell all the active listing in Annapolis assuming no new listing come to market.
In the rental market, the reverse is going on. The average annual cost to lease is rising and inventory is all but non existent. The are 65 active rental listings in Annapolis while 52 rental listings leased in May of 2011. That's a 1.25 month inventory of rental properties.
In Summary
If you're a tenant looking to lease a property in Annapolis Maryland, you'll need to move quick on an active listing. Waiting will cost you an opportunity since choices are fewer. If you're a landlord looking to own property in Annapolis Maryland this is an excellent time to start a portfolio of rental properties or add to your existing holdings.
Comments(2)