Rents Up, Sales Down

According to Zillow.com, most recent rental indexes show rents up 3 percent nationally in comparison to last year. Home Prices on the other hand, are down 4.6 percent. Generally, when rent prices go up, people will instead turn to purchasing their own home. Now, instead we see rents rising and home values falling. At what point will this trend reverse?? Property Managers all over the country are experiencing an influx of multifamily housing as investors are cashing in on their investments while rents are high. CNBC’s article “Rising Mortgage Rates May Not Hurt Housing” explains this rental phenomenon beautifully “While it seems that rents are rising at the expense of home values, the opposite is true. A thriving rental market will stimulate home sales, as investors snap up low-priced inventory to convert to rentals. That, in turn, will lower the number of homes on the market, which will eventually help put a floor under the value of all homes,”. Here at J. Butler we have experienced a high demand for Chelmsford, Massachusetts Property Management in the past month. This alone supports the notion that it is easier for owners to rent their property at a solid rent rather than taking a hit and selling their property during a bad market. Owners that would normally never think of renting are exploring what options they have as far as preserving their investments. Chelmsford Massachusetts Property Management is on the rise, along with many other rural towns where rent rates are normally not very competitive.

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