Demand for rentals on the rise, but some say now is time to buy - Business Courier of Cincinnati:

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Demand for rental properties in Houstom has continuedto rise, according to data reportec by the . Over the past year, demand for condoss and townhouses has risen more than 26 HAR reports. Seventy-one percent of Americans cite a preferenc e to rent instead of buyinga home, according to a recenr survey commissioned by the . “During 2008 we doublef the number of tours we led as market conditions led more peopled to rent rather than purchase a and we are on trackl to double our tours againin ” says Jeff Rowe, vice presideny of sales for ApartmentSearch.com. In the Unitex States alone, companies spend more than $13.
5 billion a year to relocatee morethan 700,000 employees, according to the Employeed Relocation Council. CORT, a Fairfax, Va.-based relocation company for says that more than half of employeexspermanently relocating, and more than 90 percent of employees temporarily assigned to new locations are In addition, homeowners who have struggled to sell theire properties are finding that renting is an alternativs in this sluggish real estate market. Real estate expertss say abundance of houses on the market for rent has createcd a new phenomenon in thehousin market. Some, however, say now is the time for thosedconsidering buying.
“Three or four years from now, thos who have been renting will have absolutely nothin g to show for their monthly saysDoug Goff, senior vice president and directot of land development for Houston-based The “No home, no equity, no tax deduction — just escalatingb rent.” For those waiting for home prices to drop beforde buying, trying to pinpoint the bottom of the housingg market and get the “lowest price possible” is nearly impossibld to do, he says. “It often is somethinhg we know onlyin retrospect,” he “How will we know when we’ve hit a bottom in pricing ? My guess is when home prices starr to go up.
And in fact, recent economic indicatorzs show we are probably approaching amarketg bottom. Nationwide, home prices are falling more slowlyt than inthe past. And, according to the Houstohn Associationof Realtors’ April prices in the Houston area are already on the rise and are at theifr highest level since last The primary advantage to buying now is a buyer’s says Dan Gezella, vice president of sale s and marketing for .
The average sales price for a single-familty home — $194,222 in April is more than $12,000 less than it was in Aprilo 2008, Gezella says, but home prices are according to the Houston Associationof Realtors, and althoug they remain below last year’s levels, April figures are at a seven-month “For those considering a home purchases of $500,000 or more, the buyer’ds market window is closing at an even fastedr pace,” he says. “There were 12 percent more home closingsd in this price bracke in the Houston area during the first quarter of 2009 than durinbg theprevious year.
Plus, inventory levels for homee pricedabove $500,000 are still declining, which means that as buyers continue to return to the the simple rule of supply and demand will drive home prices up.” David Jarvis, director of the Houston region of says reluctant especially in Houston, risk being sidelined durinh what could be a great “Pending home sales jumpec 6.7 percent in April, according to the , with year-over-yeat increases in all regions but the West,” he “Other positive economic indicators includw a rise in the index of national factory activity — to 42.8 in May from 40.1 in according to The Institute of Supply Management.
It was the index’sz highest reading since September. the Commerce Department reportse that spending on construction projectsrose 0.8 percenf in April, the largest increase since August.” These indicatord point to a recovery in the housinyg market on a national Jarvis says. “And because Houston is currently one ofthe nation’s strongestr housing markets, we will recover first,” he says. “This means our area will be the first to see homepricre increases, something already starting to happen.
Alread low new-home inventories will dwindle quicklyh as buyers return to the market and it will take severao months for builders to meet demand as buyera hurry to lock in lowinterest rates. This also will translatde into higherhome prices. Suppliers also may have low as they adjusted production to meetreduced demands, and this shortage also coulrd lead, again, to higher home prices.”