Sellers are now landlords, and buyers are now tenants


Sellers are now landlords, and buyers are now tenants
By Scott Rogers • August 26, 2011
Five (or so) years ago, there were LOTS of first time buyers purchasing $150K new/newish townhomes in the City of Harrisonburg. Many of these buyers were young professionals or newly married couples. At the time, 100% mortgages were readily available, and sellers frequently paid closing costs, so a buyer could get into a house with just about no money at all. Buying a house was the cool and hip thing to do, so young people were buying houses/townhouses let and right. Fast forward to today, and we find that things are a bit different. People who would have bought five years ago are now renting because they would now need at least 3.5% of the purchase price as a down payment, and may have to pay their own closing costs. They also aren't buying because home values aren't increasing at a pace that would allow them to sell the house in the next few years without taking a loss. Thus, lots of the buyers of yesteryear are now not buyers at all --- they are deciding to rent a townhouse instead. But wait......so if there are lots of townhouse sellers, and fewer and fewer townhouse buyers, what is happening, or what will happen? In large part, many of today's would-be sellers are turning into landlords. After not being able to sell their townhouse that they bought five years ago, they decide to try to rent the property instead. This entire shift in who is (not) buying and who is (not) selling will likely take several years to sort itself out. One interest side effect is that there will be lots of 30-somethings who will unintentionally end up owning an investment property when they hadn't been aiming to do so. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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