Estate Agents, San Francisco, CAAre Rents On The Rise?
A curious phenomenon that's taking place in Bay Area Real Estate right now is that rents are going up. Why? The answer is having a significant impact on Real Estate Sales. What's going on? Right now the Banks have made qualifying for a mortgage so difficult that even well qualified buyers are throwing their hands up in frustration, and renting?
It's never been more crititcal to work with a LOCAL real estate professional, and LOCAL mortgage lender here in the Bay Area. Here's a news clip from KCBS explaining this new phenomenon.
It's never been more crititcal to work with a LOCAL real estate professional, and LOCAL mortgage lender here in the Bay Area. Here's a news clip from KCBS explaining this new phenomenon.
Posted by GutekunstLomas2012 at 5/12/2011 6:32 AM 
Categories: Marin Real Estate 2011, Marin Real Estate
Tags: Marin Real EstateMarin Real Estate For SaleMark Lomasmarin realtorsmarin luxury real estate
Categories: Marin Real Estate 2011, Marin Real Estate
Tags: Marin Real EstateMarin Real Estate For SaleMark Lomasmarin realtorsmarin luxury real estate
Yes, loan qualification is a different animal than it was five years ago, but I'm not sure we want to return to those days either.
"Make sense" underwriting is what they used to call it when you could provide a good enough excuse for the bank to give financing to a couple who couldn't qualify under normal guidelines.
Often, the bank's desire to loan lots of money to unqualified borrowers didn't make any sense at all, and it turned into the disaster we see today.
Now the pendulum has swung the other way! Banks seem to be looking for an excuse NOT to approve a loan!
As far as rents, the traditional rate of home ownership was always around 50% until the "drunken sailor" decade of 2000 to 2010. At its peak, home ownership was as high as 69%!
Now, it is coming back down because many people (who used to rent) who were able to buy a home in the early part of the decade have lost their homes and are forced to rent.
When home ownership goes down, renter percentage goes up and rental properties become in short supply.
This drives the price of rents upward.
This is Supply vs. Demand that we all learned in economics class.
Now we are seeing - and feeling it - first-hand.
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