Rental Market Trends
Some great news in the rental markets, we’re seeing days on market (the number of days it takes for homes to rent) trend down to in line with 2024 and 2025 days. The median is currently sitting at about 22 days. This is great news in the calculation of lost rent for days vacant, and we’re closely monitoring this to ensure our on-market properties move for the best dollar value, in the quickest time possible for their areas.
We’re in the pitch of the summer leasing season, so it’s pedal to the metal on turning properties, and walking move outs! Our goal is to turn your units quickly, and keep them within this summer season “dip”.
Sales Market Trends with Mike Minns of Atlas Realty
Mortgage rates have been averaging 6.54% nationally, ending last week at 6.42%. Persistent mortgage rates have kept buyers away, but with schools letting out in May, the market typically slows as people go on vacations, followed by the peak of the sales season. I still expect a slower-than-usual market, but it seems to be stronger than last year. The war with Iran doesn’t seem likely to end soon, and if it doesn't, we could see inflation back up to 4% by the end of the year. With the war ending, we will still likely see inflation end the year higher than the Federal Reserve would like. Even with a new head of the Fed, it is still not likely we will see cuts to the Federal Funds rate, certainly not this summer sales season, and time will only tell if we see some this Fall or Winter.
At the beginning of the year, it seemed possible that the market might start to turn and initiate a rebound. I still believe that once the rebound begins, prices are likely to rise quickly and regain all lost value within 6 months to a year. Currently, it seems more probable that this will happen in early 2027. However, political and economic factors continue to delay this recovery and may do so again in 2027. If the recovery starts early in 2027, values will probably recover by the end of that year's sales season or, if it follows the trends I've observed over the past 25 years, early 2028.
In summary, it's still advisable to hold onto your real estate if there's no urgent need to sell. While there are cases where selling might make sense, for most people, we recommend maintaining a holding pattern if you're contemplating selling. It might still be a good time to buy if you're looking to park some cash. Properties aren't generating strong cash flow without a substantial down payment. As always, each situation should be evaluated individually and we’re here to help guide that decision if needed.
Christopher M. Francis
Owner
Rollingwood Management, Inc.