Wallace Gibson, a very astute Virginia Leasing and Property Manager, sums up the current market well. Folks ask me when I think it will recover. It's not that simple, but a lot of what will drive the recovery in my mind is a very strong leasing market such that folks will be driven to BUY, as it will be a better dollar value when rents spiral upwards.
Several years ago, the idea was floated that the federal government would FORGIVE deliquent mortgages and RENT to the current owners as if they were tenants.
Somehow, that idea "never made it out of committee" so the MARKET has created the ALTERNATIVE whereby owners with unsold homes who NEED TO MOVE are leasing their UNsold homes.
This is happening ALL ACROSS THE COUNTRY and there is a CONGA LINE of homeowners becoming renters and renters who are remaining renters.
When the TIME IS RIGHT, the economy is more stable, employment longevity returns, mortgage underwriting returns to sanity * many of the current renters will be able to SELL their current real estate and BUY in their current location.....however, many will not.
I suspect that there is a generation or two of Americans who will never itch to buy their first house which may or may not be sad. They will be happy in their mobility, their ability to change rental homes as their children progress in schools and they seek specialty education or they wish to incorporate additional members into their household without it costing them a 6% commission.
Property owners becoming LANDLORDS
* REDUCES the amount of foreclosures in an area
* REDUCES the number of STALE properties which are on the SALES market
* REDUCES the PERCENTAGE of UNSOLD properties that are being factored into many of the MEDIA statistics as EVIDENCE of the continued BAD housing MARKET * Allows time for the AREA real estate market to RECOVER so that the area's tax base is not adversely effectedmark and area TAXES are not increased
* Allows new residents to the area to get established in their NEW LIVES so that they are in a position to BUY faster!
SO Disparaging these customers because they are not buying a home is a mistake and agents who do so do so IN public and in their blogs may be doing themselves and their real estate career a great deal of damage!
Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.
View our available Charlottesville, Albemarle and Lake Monticello rental homes online with photos and floor plans
"...to be a Virginian, either by Birth, Marriage, Adoption, or even on one's Mother's side, is an Introduction to any State in the Union, a Passport to any Foreign Country, and a Benediction from the Almighty God...." Anonymous