Home values are up and with them come . . . rents!
Yeah, the good, the bad and the ugly in real estate. Home values are looking up in many parts of the country (0.7% on average but as high as 1.9% in some areas). But that increase means rental prices are also climbing. Actually rents outpaced values, rising an average of 1.6%.
So you do the math for a minute: Home values are rising, though still leaving the vast majority of homeowners underwater. People who at this point can’t afford to make their payments are heading for rental units, but those are also getting more expensive. So what’s the relief?
Well, one missing part of the puzzle is this: foreclosures are down slightly. Instead of 8 homes per 10,000 being in foreclosure, it’s only 6.8 homes. So if trends of foreclosures slow, and more people can stay in their homes, then hopefully the gains in home values will outpace the rise in rental prices and most homeowners will benefit.
What have you guys heard about this? Is this working out well for the average Joe? Or is everyone hoping to see rents low and values high? Share your insights below.