In just the last few weeks, the higher end of the real estate market in Newport Beach, Corona Del Mar, and Newport Coast has just gone flat! In lower price ranges, it's a Seller's Market with multiple offers and bidding wars. But in the over $1 million price ranges it has become an extreme Buyers market with several months supply of inventory. Even with painful price reductions, the Buyers just seem to have gone away.
Activity was at it's peak in February through April this year. Inventory was extremely low and demand was extremely high. That was the time to sell. So if you're left holding the house you wanted to sell, it might be a good time to Lease it out and wait to Sell during the next rise in the market.
$7000 to $10,000 per month is the sweet spot for our area. There is an abundance of well qualified Tenants looking for any home they can find in that price range. As a Landlord, you can name your terms adn pocket a higher than market rent.
The demand for Leases comes in part from Families in transition who are in no hurry to buy. They would rather settle for a year or two before they buy. Put that together with the fact that as long as interest rates stay low and prices stay flat, there's not alot of incentive to go ahead and Buy.
Newport Beach and Newport Coast attracts many well qualified Executives and Medical Professionals with high income to afford a high monthly rent, but sometimes not the significant downpayment required for their purchase of a higher end home.
If you occupy your home, Leasing it is a way to cover your carrying costs so you can go ahead and make the move you have been wanting to make and wait to sell in a stronger market.
If you have a home you would consider Leasing (for more than it's worth) give me a call. Let's talk about your options!