I’m noticing the same thing…in the Rancho Bernardo area, I’m seeing lots of houses get listed for sale, and then they’ll wind up on Craiglist or the MLS a couple months later as rentals. Unless rents are up over 10% in the last year, the asking rental rates are often too high by a couple hundred a month as well…I think being a landlord is going to get tough…will be easy to find people looking for rentals, but very tough to find folks with good credit.
The house I’m living in is going to be an interesting case study…owner has to sell by next November or face 70K in Capital gains tax…he’s staring into the teeth of a very, very ugly market, though and is going to have trouble rationalizing that the house he had on the market for 600K 2 years ago can only sell at 450K (which incidentally is what I offered him 6 months ago to buy it).
