The following article taken from Zillow Research and can be found at
In Laguna Niguel, according to Zillow, the average rents increased 10% over the last 12 months, while the average values declined 3%. What does this mean? It means this is a great time to invest in real estate and become a landlord. For example, the Tampico development in Rancho Niguel has average rents of $2600 per month and average sales prices of $421,000. This equates to a annual rate of return of almost 4.5%, taking into account the 3% decline in value. Still, a better rate than you would be able to find in the unpredictable stock market!
Rental markets heating up, but home values continue to declineMedian rents rose 3 percent from January 2011 to January 2012, but home values continued to fall, declining 4.6 percent during that period, according to the January Zillow® Real Estate Market Reports.
The Zillow Rent Index (ZRI) showed year-over-year gains for 69.2 percent of metropolitan areas covered by the ZRI. By contrast, only 7.3 percent of metro areas covered by the Zillow Home Value Index (ZHVI) saw home values rise.
In the short term, national monthly rents declined slightly from December 2011 to January 2012, falling 0.3 percent to $1,218. Home values fell 0.5 percent during the same period to $146,200.
Additionally, foreclosures ticked up slightly in January, when lenders foreclosed 8.4 out of every 10,000 homes. That was up from December, when 8.1 out of every 10,000 homes were foreclosed. Foreclosure re-sales also rose on both a month-over-month and year-over-year basis. Nearly one-in-five (19.5 percent) of homes sold in January were foreclosure resales.
Missy Wiesen
Realty Benefit
HAFA Certified Specialist
Certified Negotiation Expert
DRE #01745112
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