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Mortgage rates are up, inventory is increasing, prices may decrease in markets and rental rates… : RealEstate

June 18, 2022
in Real Estate
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I am seeing a number of posts on here about how mortgage rates have increased and their effect on home buyer purchasing affordability as well as the belief by many that the real estate market will see a significant drop in values in the next 1-2 years.

I have heard of a number of people selling now (at the peak) and then planning to rent for a few years and then rebuy after the housing market “collapse” occurs.

I have seen a number of people saying they will wait to buy until the housing market “collapses” and it becomes more affordable.

Here is my question, with some data…..Are you anticipating rents to drop? Rents in my area (So Cal) vary from $1,500 to $5,000 month with most homes leasing in the $2,500 low end to $3,500 mid range, plus. If you expect rents to drop, why do you have that belief? People need a place to live….whether they are owners or renters. If more people sell in order to rent, how do you see that affecting rental rates? Are you anticipating both real estate values AND rent prices to drop together?

https://www.washingtonpost.com/business/interactive/2022/rising-rent-prices/


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