One of the first places I look when discussing the rental market is craigslist.
This year has seen a few twists and turns ...
Michael - I would like to understand about the timing better. Why would mid-October be a tough time to rent to good renters? Again, is this related to the school year or just because it's past the end of summer. When is the next good cycle to rent then?
Of course, if you price your rental rate right, you'll still get plenty of good prospective tenants. But, with the rental returns on Sunnyvale investment properties already very thin, you may find yourself with negative returns for a while. (Definitely don't expect cash flow on a financed 3 bedroom unit.)
Timing is important to good investment returns. I've got all my investors set with their rentals for the year already. I'm getting them lined up for the next round.
Right after the labor day there is usually another spike of activities as summer vacations are over and more people are in town. We are experiencing a shortage of housing in Bay Area right now and, I think, there no really bad time to list a house.
I agree that prices should continue to go since our supply is so low.
I find that the market has heated a bit since the end of July but it is a bit uneven. We continue to have very little supply and homes priced right are going very quickly.
In my market and with my buyers some of them took the summer off and went on vacation. Now they are back and looking more seriously.
I was involved in two offers this week. One, I had a client make an offer on a 3 bedroom townhousein Sunnyvale. There were 11 offers and I expect it is in contract for well over asking price. It was not up to its 2006-7 prices but getting close. In some locations, I am seeing homes now get close or surpass their 2007 highs; especially, in excellent school districts with homes that are in good condition under 2.4 million.
The otheroffer was multiple offer situation as well but the number of offers was less. But it too is under contract for over asking price.
In Sunnyvale, as of last week there were 40 Active Listings 86 Pending contrast that to a year ago with 98 active and 87 pending. I sold a home last year in August and it was Cherry Chase schools we had a couple of offers but now there is nothing close to that price.
What I am seeing is a very tight rental market with rentals going on and off the market almost immediately.
The rental market is very strong with many more people moving into the area every week than moving out. You should not have a problem renting a 3 bedroom home at any time of the year. I got 3 applications this week-end on a rental and this was a holiday.
I would agree with Marcy that the market is a little less buoyant now than it was a month or two ago.
That's fairly typical at this time, as people are getting themselves back into their school and work routines, so home-buying takes a bit of a back seat.
I would expect things to pick up a little over the next month or so, then taper off again over the holiday period.
As Marcy says, this doesn't mean that home prices have pulled back, nor that they necessarily will. It is normal for most of the increases in a year to happen in the second and early third quarters, and for people to take a bit of a breather at this time.
From a rental point of view, I think you'll be fine no matter what the sales market is doing just now. There's a shortage of good, clean rentals, and we live in an area where people move around a lot, and don't always buy.
The market stayed very active through the summer, but not as crazy as last spring. Historically this is the best time of year to buy. There are not as many buyers as in the Jan-June time period, but just because that has been true in the past it does not mean it will be true this year. What we are seeing is that homes are not appreciating at the same rate they were a few months ago. The prices are not going down, they just aren't going up either.