I know that many properties are being held indefinitely at this point, but I can’t help but wonder if they will eventually become rentals and increase supply.
I know I’m in the extreme minority in thinking rents won’t be going down, but here’s the question: how will those bank held properties eventually become rentals? Everyone says, oh, lots of foreclosures, lots of REO’s, the rents will go down soon. Well, those foreclosures and REO’s need to find an investor willing to get a loan on the property (which is hard given the credit crunch nowadays), with enough money to put into the place to make it rentable (not a lot of investors with a lot of cash money nowadays), and then you need a lot of those investors in order to make an effect on rental prices. I just don’t see it happening (yet). Believe me, I’m looking. If these investors start going into the market again, everyone would notice because sales would start increasing.
Which I guess would be when the bottom is. =shrug=
