IT'S TIME TO GET THE RENTERS OFF THE FENCE

By
Real Estate Agent with Weichert Realtors Spring House
Wouldn't it be great to see an influx of first time buyers enter the market from the rental community?  What more is it going to take.  Interest rates appear to be just below 6 percent, the stock market should end the day in positive territory and there is an abundance of desirable properties on the market. National reporting of the doom and gloom within the housing market is not helping.  Has anyone informed those naysayers that real estate is LOCALIZED?  Just think what a shot in the arm it would be if the local media began to tout the positive markets within our region. Just as an example, look at the TREND results for Q4 from Montgomery Township's 19454 Zip Code.  Average price per home UP 9.80% and selling for 96.4% of listed price (with average days on market of 66!).  Granted homes sold were DOWN .93%.  But, there were still 106 homes sold in the quarter.  Proper pricing and  preparation of properties listed is essential in this market. If everyone would accentuate the positives within this market everyone would be better served.   
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Rainer
6,379
Laurie Jenner
Your Home Team Advantage - Cary, IL

It's very tough to get renters off the fence in my area.  I listed a home at $300,000, below market value at the time.  This was when the market really started to shift in my area, unfortunately - so we priced it agressively.  As the weeks went on, we listed it for rent.  It's renting for $1450 a month.  Property taxes are $7000 a year on the home.  The PITI - even with 25% down is still higher than the renters are paying.

If someone could explain to me how to convince such a renter to purchase a home, I'd love to hear it.

Mar 13, 2008 07:58 AM #1
Rainmaker
1,402,864
Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen
First time buyers are coming out in droves in my market area. The combined affect of low intrerest rates and an increase of inventory is unprecendented in recent years...and our Danville California renters know it! I ready Laurie Jenner's comment and I appreciate the hurdles. However, please remember that the interest paid and property taxes paid decrease the income tax burden. Over the long haul, home values/appreciation has outperformed the stock market. Renting now can be short-sighted. Qualifying now and getting into your own home at a good price when there are choices beats buying whatever is available when inventory tightens up.
Mar 13, 2008 08:06 AM #2
Rainer
2,658
Charlie Hoffmann
Weichert Realtors Spring House - Montgomeryville, PA
Realtor - SRES
Property taxes appear to be much higher in your area than here on the east coast.  Definitely has an impact on a renter's transition to home ownership
Mar 14, 2008 05:53 AM #3
Rainer
2,658
Charlie Hoffmann
Weichert Realtors Spring House - Montgomeryville, PA
Realtor - SRES
I certainly hope so............too much opportunity out there and too many pessimists
Mar 14, 2008 05:55 AM #4
Rainer
6,066
Rebekah Littlefield
Gary Mann Real Estate - Moses Lake, WA

I have been working hard to convince the renters in my area to get out there and buy.  I even aggressively advertised a FREE Home Buyer Seminar, but only 5 people attended (1 of which is already my client)!!!  How in the world do I get their attention to help them realize the benefits of home ownership?  Regardless of the "doom and gloom" being reported in the news, our housing market in Moses Lake, WA is booming and is still affordable!  I wonder if all this "news" is scaring our poor renters out of taking any action.  This reporting of the housing market needs to be SPECIFIC and help people understand that it is a LOCAL problem (or non-problem) and this general blanket of "doom" needs to STOP.

Rebekah Littlefield 

 

Mar 14, 2008 06:25 AM #5
Rainmaker
4,433,127
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
It would be great to get renters to buy, but with tighter credit standards it is getting to be difficult.
Mar 15, 2008 11:18 PM #6
Anonymous
Charlie Hoffmann Realtor, SRES
   Very true, however, many of those who continue to rent do have very good credit scores and the financials to make a strong offer.  I believe they are more apprehensive of the negativism of the media regarding the housing market and are focusing more on the national picture as opposed to the local situation.  Many parts of both Bucks and Montgomery county are still showing positive numbers. 
Mar 16, 2008 01:53 AM #7
Rainer
6,379
Laurie Jenner
Your Home Team Advantage - Cary, IL
Charlie's comments are very valid here, too.  Not only is is more affordable to rent now, but the media claims the market has not bottomed out yet.  The renter has nothing to lose by continuing to stay put for the time being.  It stinks - but it's the way it is.
Mar 16, 2008 03:55 AM #8
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