Home Buying in Newport Beach>Question Details

Thomas M Abe…, Real Estate Pro in Newport Beach, CA

Rising rents expand army of buyers....is this accurate?

Asked by Thomas M Abercrombie, Newport Beach, CA Tue Jan 29, 2013

The California housing outlook is very positive for 2013.

All the recent indicators, including rising home prices and sales activity, declining mortgage distress, the return of homeowner equity, new home sales and months of unsold inventory point in the right direction. Of course, underlying these positive housing trends is the economic recovery throughout California.....http://tma552.blogspot.com/

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2
Thomas,

- The short = 2 sides
1. Rising rents are encouraging "qualified buyers" to purchase.
2. Rising rents are gaining investors attention in investing in income properties.

- Elaboration -
Although we have some coming factors that may or may not affect the current sales "harvest" in southern California = a possible fiscal cliff that could affect interest rates (although not guaranteed), as well as $60+BB in REO's (from our findings these distressed assets will lie mostly outside our coastline communities), yes rents rising in "select" regions are encouraging those buyers that find themselves "qualified for financing", to seek home ownership.

- Investors Eye -
From this same stimulus, yet another angle is that residential income properties have been seeing slight increases in value - multi units - (pending CAP rates, and conditions), but most clearly identified by our analytics is that investors are on the hunt for prime secure income properties = opportunity still present from the greater population of consumers in need to rent while their income/employment foundation stabilizes, past financial fractures are mended (fico, assets, BKs and so fourth), and their hopes for lending qualification comes sooner than later.

- STEP with Knowledge -
We consult our income property clients (while we perform all diligence) to be aware of the strength of existing property tenants, surrounding employment levels, as well as planning a head for when the purchase market may open broader doors for buyers within the caliber of the properties standing tenants. Failing to plan is planning to fail we say.....

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Jason Liddell
Estates International
Jason@EstatesInternational.co
949.891.7331 / 714.943.2084
EstatesInternational.co
0 votes Thank Flag Link Tue Jan 29, 2013
The reasons people rent now often does not make them candidates to buy. Renters are usually waiting for something...their home elsewhere to sell, saving for the 20% down payment, determining what neighborhood best fits them, a divorce to conclude, etc.
0 votes Thank Flag Link Tue Jan 29, 2013
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