Estrella Homes

News in Estrella Mountain Ranch

Estrella Mountain Ranch Rental Market

I read in a forum recently about a resident in Estrella Mountain Ranch stating that the rental prices for homes listed for lease in Estrella are currently too high. Another member of the forum very keenly remarked that supply and demand, some basic economic principles, are what is causing the rental prices to go up. This is absolutely the case. The supply of homes for lease at this time is low and the demand for them by consumers (those looking to rent rather than buy) is high.

This can be caused by a few things. Obviously, it is no news to anyone that many homeowners today are upsidedown on their homes. Their home is worth much less than what they initially paid for it or that they took out of it in equity a few years back. Someone that normally might want to rent a home out to a tenant may now be walking away from the house and foreclosing or short selling the house instead. Renting a house is an investment to a homeowner and many homeowners are not seeing it as a good investment at a time when they are upsidedown on their mortgage with currently no reversal in sight. Not to mention the fact that they may not be able to get enough money from rent to cover the mortgage.This is a theory that can explain the low amount of supply right now.

This same theory can be used to explain the current high demand for rental homes. Many of the same people that are short selling or walking away from their homes are the same ones that do not want to leave Estrella Mountain Ranch or the community that they were living. They are looking for rentals that they can lease in the same community because their credit will take time to repair and allow them to be able to purchase a home again.

Good luck and let me know if you would like me to help. I have found some great deals for others!!

Advertisements

July 27, 2010 Posted by | Uncategorized | , , , , | Leave a comment

Estrella Homes

Estrella Homes

July 27, 2010 Posted by | Uncategorized | | Leave a comment