Rent is due…to stay the same
Much like home prices this Fall, it appears we have reached the peak of tenant affordability. Average rents for single family homes in Metro Denver area are up, but not by much. Rents are currently up .85% from this time last year, which is less than the rate of inflation. This isn’t bad news, though, because rents have already increased significantly and vacancy rates are still very low. Colorado vacancy rates are at 3.1%, with Metro Denver at 2.87%. (The national average is 5.3%.) This makes for a strong rental market for investors looking for long-term cash flow. The tricky part is purchasing low, limiting risk and keeping expenses down. Check out the Invest Success Mentorship Program if you want to learn how to acquire a profitable rental portfolio without tying up all your cash.
Let the 2019 predictions begin!
As the new year approaches, we are going to see a lot of predictions about the future real estate market. Already, the experts are pretty confident that the real estate market is cooling nationally. No one is really concerned about a “crash” and Sellers will continue to have the advantage for the foreseeable future. That being said, here are 5 trends that are predicted for 2019:
- Mortgage rates will continue to rise and hit 5.5%
- Homebuyers will have more negotiating power and Sellers will need to make more compromises
- As price gains slow, home values will still appreciate 2-3%
- Markets will cool faster or slower depending on local conditions and tax burdens
- Upper-tier markets will soften while demand for entry-level housing remains high
QUOTE OF THE WEEK
“The thankful receiver bears a plentiful harvest.“
See you soon,