Current Local RE Market is GOOD for Rental Home HOMEOWNER
Having been quoted in The Hook about the rental increases for GOOD, single family homes, I’m including some recent articles on the real estate market nationwide that supports my observation that the local market is enjoying some significant rental increases.
$ There are fewer rental homes in the area as many investor owners took advantage of the last few years of double digit appreciation and sold their rental homes to first-time owner-occupants. They either went into the long string of apt to condo conversion units for CASH or they got out of the real estate market altogether.
$ Many new hires to the area are electing to rent rather than buy if they are only going to be in the area for 2 or 3 years. While the rule of thumb for the last decade has been to buy a home if you would be in our area for 2 or more years, newcomers to the area are not willing to get stuck with an unsold home if and when they leave the area.
$ Many new residents still have un-sold homes with little or no equity. They are either renting their current home short term until the market turns in their area or the wife is remaining in that home until it is sold and the entire family can relocate and reunite to our area. In anticipation of this, they rent a comparable home locally so that the family does not have to relocate twice.
$ In addition to NGIC * National Ground Intelligence Command * expanding and bringing in over 800 new employees, the new MJH * Martha Jefferson Hospital * has broken ground next to State Farm on Pantops. The UVa Medical Center is expanding, again, and with a significant grant from the State of Virginia, the new Emily Couric Cancer Center has broken ground where the old "Towers" at the corner of W. Main and Jefferson Park Avenue once stood. While many incoming new residents will rent some of the newer condos or conversions in the area, many will want to rent homes in the county for amenities, schools and quality of life.
$ The Fluvanna/Lake Monticello area continue to be desirable for new residents working in the west side of Richmond/Henrico/Short Pump area and Charlottesville. Additionally the commercial area at I-64/Rt 15/ZionXRoads has blossomed with a new Best Western motel on the NW corner across from a new LOWE’S. This area will continue to attract new com-ercial growth with the employees desiring to live in Albemarle or Fluvanna counties * a 10 to 15 minute commute.
Anticipating the tightening of our local rental home market, many homeowners who are relocating out of the area are electing to rent their current home and purchasing a second home in their new home town. They are buying at the low end of the market and hope to sell their current/local home when the area sales market increases in the next few years...Buy LOW and Sell HIGH works for real estate as well as the stock market.
Anticipating the next growth area for desirable rental homes is not hard. The Crozet/Old Trail area will not be a "rental home destination" until there is significant commercial presence in the area * primarily a regional grocery store which is in the works.
Although there continues to be new construction at Lake Monticello, it is smaller/Senior housing that does not attract families so the current rental homes in the area will continue to be desirable. The Forest Lakes/Hollymead area continues to attract families because of the very good schools and commercial businesses new to the area.
My crystal ball says that our area’s rental market will continue to remain STRONG and demand will continue to GROW!!
From our May, 2008 newsletter....view the full newsletter on our website...http://VAHomes4Rent.com
