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Two years ago, thousands of people rushed to get a piece of the booming housing market. Mortgages were easy to get, even for buyers with little or no credit. Once interest rates shifted however, buyers who received sub prime mortgages were no longer able to make their monthly payments. Now the housing market is being flooded with foreclosures. Lenders have learned their lesson, and are much stricter with their lending policies. Now, many people who would like to enter the housing market are unable to obtain sufficient financing. This has led to a serious drought in the buyers pool. There are also many people who were considering buying a home, but have now been scared off by the rate of foreclosures. With buyers hesitant to make a purchase, sellers are having a tough time unloading their homes. This stalled housing market has led to a substantial rise in the rental market. Buyers who are unable to secure financing must face the reality that they can t purchase a home at this time. These folks need to sit tight in a rental unit while they work on building their credit rating, and save money for a down payment. Experts are saying that the housing market will bounce back within a year or two, so potential buyers should focus on improving their credit and financial situation until things shift. Buyers who are eligible for home loans are also finding this a good time to take a step back until the housing market is on steadier ground. Young urban professionals Cheryl 28, and Raoul, 34, already have enough money in the bank for a down payment. Their credit is good, and both have steady incomes. They have decided to rent until interest rates go down. Says Cheryl, With all the doom and gloom you see about real estate these days, we figured it d be a good idea to just wait a year or two. We want a home, definitely, but we don t want to pay through the nose. We can save money for now by renting, so that s what we ll do until the market changes. Many owners who have lost their homes to foreclosure are now heading into the renting world. Their credit has been badly damaged, and they don t have enough money to buy a new home. Without a suitable rental unit, many of these people would end up on the streets. They have no choice but to take a rental while they rebuild their financial security. This foreclosure situation is the main reason that the cities that were booming in 2005 are now becoming rental hot spots. Places like Miami, where buyers flocked to scoop up the great housing deals, now find themselves in trouble. Foreclosures are most rampant in these cities, and the housing market has stalled completely. In these areas, where demand is high, there has been a substantial increase in rental rates. In other areas of the country, where new construction has led to an increase in available units, rents are decreasing slightly in order for landlords to remain competitive. Consider riding out the housing market turmoil by renting. You can find a beautiful property to suit your family s needs, while saving money and building your credit at the same time. National Rental Properties is the premier online resource for bringing rental properties together with prospective tenants. Search homes for rent from all over the country!
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