I also read somewhere that the rental rates would increase due to the displaced families from all the foreclosures. I don't think I've seen evidence of this whatsoever in my market. Families are consolidating and we've seen more folks try to negotiate heavily down on the asking price saying "I'm looking at 10 other properties just today" or "I have this other house where the owner will take this...can you match it". Rents are still strong in Baltimore, but I haven't seen an increase.
I have had about a 20% conversion rate from my clients who I assisted in finding a rental property that have come back to me to purchase a year or two later.
Yes, I've seen rental prices increase in my region. I attribute it to workers relocating here that cannot afford to purchase and to all the home owners who have lost their homes or jobs and can no longer afford their mortgage payments so their only options are to move in with family or friends or rent. Increased demand= higher prices.
I expect this trend to continue.
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