i dont imagine foreclosed properties end up in the rentals for quite some time, if at all. so there’s one reason for potential homes to sit empty.
same for sale properties… hoping that the bottom has passed, you keep holding out and holding out until you have no choice. whether sfr or condo conversion or new condo units sitting on the shelf.
so i think it’s a transition period, things could go up or down locally due to latent demand and transaction demand (ie., got foreclosed on or got lucky and sold but still want to live in the same area or better). rents will probably lag sale prices in either increases or declines…
actually, that’s probably something someone could look up, a chart of rent vs home price change…
right there in rich’s bubble primer. rents lag sale prices, looks like on the order of a year or 2.
