patrick.net

i had already predicted this: prices will go up but rents will go down this year.

Mark D says

i had already predicted this: prices will go up but rents will go down this year.

Just like during the last bubble. :)

treatmentreport says

Mark D says

i had already predicted this: prices will go up but rents will go down this year.

Just like during the last bubble. :)

yes the game is to re-inflate the bubble. question is...is it necessary a bad thing if you pop it before it bursts? if you can picture that.

RentingForHalfTheCost says

I can see the inventory already rising in my area of interest. Lots of 3+ bedrooms between 2k-3K for rent in Pleasanton/Dublin/San Ramon. Two months ago this search turned up about 5 in the same area. Get ready folks for all the investors fighting for your rental dollars.

It's hardly amazing or meaningful that rental inventory is increased over December. Why don't you compare it to what it was this time last year? That might mean something.

JFP says

RentingForHalfTheCost says

I can see the inventory already rising in my area of interest. Lots of 3+ bedrooms between 2k-3K for rent in Pleasanton/Dublin/San Ramon. Two months ago this search turned up about 5 in the same area. Get ready folks for all the investors fighting for your rental dollars.

It's hardly amazing or meaningful that rental inventory is increased over December. Why don't you compare it to what it was this time last year? That might mean something.

Very true. I wish I had the rental stats to compare. All I got is my month to month memory compares. Ugh.

The people that I have talked to that rented throughout the housing bubble describe a fairly sudden rising of rents that caused them great hardship. Prior to the increases they could live comfortably, after the increases paycheck to paycheck. Most of them today say rents are still higher than pre bubble.

RentingForHalfTheCost says

I can see the inventory already rising in my area of interest.

Inventory is rising in my area too and it isn't even spring! Rents will drop and many investors will flee. Some have very unrealistic expectations.

I have also noticed many new listings that when you look at the property history it would appear that the owner is just happy to be getting out of their upsidedown nightmare. If prices continue to rise I expect more of these type of owners to list. I will be one of this crowd. :)

Houses are for living in, not finding buried treasure, contrary to popular belief.

...All these flippers and floppers need us regular folk sooner or later.

NuttBoxer says

...All these flippers and floppers need us regular folk sooner or later.

Nope. Buying with counterfeit money requires no effort, profits or brains. Just the appearance of legality while the laundering goes on.

taxee says

NuttBoxer says

...All these flippers and floppers need us regular folk sooner or later.

Nope. Buying with counterfeit money requires no effort, profits or brains. Just the appearance of legality while the laundering goes on.

The idea that realtors are part of a big laundering scheme kinda makes a bunch of stuff calm down in my mind. The world and its motives get a bit clearer.

Over 40 rentals as of today in my area and price/size range. I don't remember anytime in history that you could rent a 4bd/2ba for under $2500/mth in this area. But but, the graphs keep saying rents are rising. I don't get it. Someone is manipulating again IMHO.

Same search today gives about 45 with nothing really moving. A landlord squeeze is underway. Just wait for it.

what is that website you are using? I want to look up my area.

MsBennet says

what is that website you are using? I want to look up my area.

I think it is mapliv.com

NuttBoxer says

Houses are for living in, not finding buried treasure, contrary to popular belief.

Actually sometimes houses DO come with buried treasure. The house across from my in-laws was sold after the elderly occupants passed away. At closing it was realized by the surviving offspring that their parents had buried $10k worth of silver bars in the backyard decades before. The sellers frantically dug up the entire backyard looking of the bars before the house closed.

Never did find the treasure. The silver had probably been dug up long before but the husband hadn't told the wife. Or not. The new owners might be in for a nice surprise.

UP UP UP we go. Rental inventory is just growing each week! Things are now sitting for way longer than normal. Renter market is not coming, it is already here. ;)

lostand confused says

MsBennet says

what is that website you are using? I want to look up my area.

I think it is mapliv.com

Yes

Rentals in OC are growing as well (anecdotal, but I noticed an increase of 11 rentals month over month in the area I used to rent in).

Not to mention Irvine Company just completed Los Olivos, literally hundreds of 1,2,3 bedrooms for rent.

I don't see why this is a surprise.

I posted in a thread a several months back that I knew of a few people who had bought properties that they were leaving vacant and purely hoping for appreciation. I mocked it as stupid. Roberto Aribas posted mocking me saying that no investor would do such a thing. Well I'm telling you they did.

The thing these "investors" miss is that the appreciation must be drastic and sustained to make money in that sort of "investment" because of carrying costs and sales costs. Real estate is NOT a liquid investment. So yeah, cool, a place goes from $300K to $400K in two years. But how much did taxes, HOA, upkeep, closing, selling costs, etc cost you? And if you don't time it exactly right, you're not doing a whole lot.

And wait until the stock market craps out.

http://www.moneynews.com/MKTNews/billionaires-dump-economist-stock/2012/08/29/id/450265?PROMO_CODE=110D8-1&utm_source=taboola

If that happens what you'll see is the inventory of for sale homes flood as people try to get money back into the stock market once it bottoms. And thats when things get real interesting in the housing market.

Goran_K says

Rentals in OC are growing as well (anecdotal, but I noticed an increase of 11 rentals month over month in the area I used to rent in).

Not to mention Irvine Company just completed Los Olivos, literally hundreds of 1,2,3 bedrooms for rent.

The building I live in located in DTLA is still increasing its rents. A quick craigslist search for DTLA shows some rentals at lower prices than weve seen in about 2 years. There also just happens to be more long term residents moving out than I've seen since I moved in 2 1/2 years ago.

Just keep in mind that on the types of homes you are looking at (3BR Single Family), a vast majority of leases come due in the months between May - Sept because parents coordinate their moves with the school year. So not only should you see increasing inventory as we approach those months, but the pool of renters rises dramatically as well.

Landlords hate having to rent a 3BR in winter months because the pool of renters is so much smaller. I can almost always get 10% more on a lease signed in summer than one signed in the winter.

If rents are flat this summer, then I'd expect a noticeable decline into the winter, but if I had to make a prediction, rents will 'seasonally increase' into the summer months.

FYI, I like the presentation of Padmapper.com better than mapliv, but to each his own.

Well, the 1br/2br market in LA areas also seems to be declining and staying longer.

Rents are down where I'm at, by a few hundred bucks. Not a ton available though - at least in my area.

gbenson says

FYI, I like the presentation of Padmapper.com better than mapliv, but to each his own.

I like this site!!! I will be using it the next time I need to find a place.

It seems like rents are down in San Jose/Campbell area and there is a lot of rentals out there right now. It gets me thinking that I might ask my landlord for a rent reduction when my lease is up.

Anyone need a 6bd/5ba! Big family.

https://www.padmapper.com/show.php?type=0&id=148833847&src=main

Try buying this place for the same monthly. ;)

To estimate the cost to buy you can check out the redfin listing for the same house.

http://www.redfin.com/CA/Pleasanton/2445-Via-Espada-94566/home/885654

Now you have a perfect example of the numbers. Not even close when you factor in all the costs. Renting is so much cheaper.

RentingForHalfTheCost says

Anyone need a 6bd/5ba! Big family.

https://www.padmapper.com/show.php?type=0&id=148833847&src=main

Try buying this place for the same monthly. ;)

That's a lot of bedrooms and bathrooms in a 2565ft² house.

RentingForHalfTheCost says

Anyone need a 6bd/5ba! Big family.

https://www.padmapper.com/show.php?type=0&id=148833847&src=main

Try buying this place for the same monthly. ;)

To estimate the cost to buy you can check out the redfin listing for the same house.

http://www.redfin.com/CA/Pleasanton/2445-Via-Espada-94566/home/885654

Now you have a perfect example of the numbers. Not even close when you factor in all the costs. Renting is so much cheaper.

That 6 bedroom home is actually a pretty good deal. I don't know much about the area though.

Goran_K says

RentingForHalfTheCost says

Anyone need a 6bd/5ba! Big family.

https://www.padmapper.com/show.php?type=0&id=148833847&src=main

Try buying this place for the same monthly. ;)

To estimate the cost to buy you can check out the redfin listing for the same house.

http://www.redfin.com/CA/Pleasanton/2445-Via-Espada-94566/home/885654

Now you have a perfect example of the numbers. Not even close when you factor in all the costs. Renting is so much cheaper.

That 6 bedroom home is actually a pretty good deal. I don't know much about the area though.

I checked it out a month ago when I was in the area. Weird house. It would be a great for someone with a lot of young kids. Each room has access to a bathroom (two share one), but the rooms are small and there is a lot of hallways. Not a great multi-family or small family. You wouldn't use half the house. The grounds need a lot of work also. It seemed like the last bit of work was the addition 20 years ago. If it was 100K less, I would probably have been interested as a fixer upper. At 850 it doesn't leave much room for additional funds in that neighborhood.

Looks like the schools are exceptional, and the crime is fairly low. I'm surprised it rents for that low. Definitely better to rent than buy.