Houston Texas Rents to Flatten in 2016

Humble Texas Renter

HOUSTON, TX. – After months of rent increases thanks to the booming economy many experts are predicting that rents will start to flatten out in 2016 and the rapid increases that we’ve seen over the last 12 months will soon become a thing of the past.

This is good news for the Houston Rental Market since the area has certainly been hit hard since the drop in oil prices but the question is will slower rental appreciation actually help renters since rents have been increasing faster than incomes over the last 24 months?

National median rent at the end of 2015 was $1,381, and is expected to increase slightly to $1,396 over the next 12 months.

The slowdown in rents means that, by the end of the year, they will be rising at a slower pace than incomes in many markets.

In December, home values rose 4 percent to a Zillow Home Value Index of $183,500.

Rent appreciation will level off over the next 12 months, slowing to an annual rate of 1.1 percent by December 2016, according to the new Zillow® Rent Forecasti. The national Zillow Rent Indexii at the end of 2016 is projected to be $1,396 — compared to $1,381 in December 2015.

Zillow is forecasting a decrease in the rate of rental appreciation amid a rental affordability crisis that has renters in some markets spending almost half of their income on rent.  Some of the fastest growing metros had double-digit annual rental appreciation at the end of 2015.

Zillow expects rental appreciation to slow down most significantly in Nashville, Tenn., San Francisco, Portland, Ore. and Denver. Rents in San Francisco saw 12.5 percent appreciation in 2015. Zillow forecasts rent in San Francisco will grow half as fast in 2016 — 5.9 percent.

Even with the slowdown, rents will remain unaffordable in many of the major markets across the U.S., especially on the West Coast. Renters in San Francisco and Los Angeles can expect to spend 40 percent of their income on a rental paymentiii.

“Hot markets are still going to be hot in 2016, but rents won’t rise as quickly as they have been,” said Zillow Chief Economist Dr. Svenja Gudell.

“The slowdown in rental appreciation will provide some relief for renters who’ve been seeing their rents rise dramatically every single year for the past few years. However, the situation remains tough on the ground: rents are still rising and renters are struggling to keep up.”

The slowdown in rental appreciation indicates that supply of new multi-family homes is catching up to demand. Substantial new housing supply is becoming available in Atlanta, Denver, Portland, Seattle, and other markets.

The Zillow Home Value Index rose 4 percent year-over-year in December 2015, to $183,500, according to the Zillow® December Real Estate Market Reports.

Source – rentalhousingjournal.com 

Get Houston Texas Property Management

For more information about the Houston Texas rental market or for Houston Texas Property Management contact Vestpro Residential Services today by calling us at (832) 498-0016 or CLICK HERE to connect with us online. 

For Rent In Houston – What’s Different about This Housing Market?

For Rent In Houston
For Rent In Houston

By Mike Buish – Vestpro Residential Services

If you own one or more rental properties for Rent in Houston you have most likely noticed that this Real Estate market is different than other Real Estate markets in the past.

What’s different in the Real Estate market now compared to previous markets?

The main thing that’s different about this current Real Estate market compared to others is that that current housing boom is considered to be far less precarious than other markets and recoveries because, after the recent collapse of the housing market in 2006 many mortgage lenders have tightened up their lending requirements and standards so it’s more difficult for people to get a mortgage loan now than before especially if they can’t prove their income and that they have the ability to repay their mortgage loans.

Is Now A Great Time To Buy A Rental Property?

 Yes, now is a great time to buy a Rental Property and list it for Rent In Houston because we still are enjoying the lowest Mortgage Interest Rates that we’ve seen in years and the supply of rentals has still not been able to keep up with demand so now is a great time to buy rental properties and build rental income.

Save Time and Money with Property Management

Once you start adding more rental properties to your portfolio it’s time to save yourself time and money by investing in professional property management service before marketing your property for rent in Houston yourself.

Contact Vestpro Residential Services today by calling us at (832) 498-0016 or click here to connect with us online.

5 interest rate basics to know in advance of the Fed’s big move

The Federal Reserve could boost interest rates as early as this month, as has been discussed in a gazillion news articles. That move, when it comes, will affect almost everyone, in some way.

But a lot of the reporting and speculation about the Fed’s next move likely has gone over the heads of millions of Americans. If a sizable slice of the country has problems grasping the basics on interest rates — how compounding works, the link between rates and inflation, and so on — they might not understand what the next central bank action could mean.

Various surveys indicate that many Americans continue to struggle with financial literacy topics, including those related to interest rates. This hasn’t stopped millions of people from using credit cards, taking out student loans and buying homes and cars with borrowed money, though it does help to explain why some people face debt problems.

Source – Usatoday

Little movement in the bond market

Mortgage rates have tended to fade big moves in the bond market lately. When rates fall well below 1.9% on the ten-year bond, mortgage rates slightly fall. Similarly, when rates rise to 2.3%, mortgage rates tend to rise slightly.

Mortgage rates have largely ignored the moves in the bond markets lately. Last week, ended December 4, they fell by four basis points while the ten-year bond yield rose from 2.22% to 2.27%. Investors interested in making directional bets on interest rates can look at the iShares 20+ Year Treasury Bond ETF (TLT).

Effect on mortgage REITs

Mortgage bankers such as Nationstar Mortgage (NSM) and Wells Fargo (WFC) are looking forward to 2016 at this point. The Mortgage Bankers Association has put out initial estimates for 2016, and it’s predicting improvement in the purchase business, but a continuing fall in the refinance business, as rates rise.

The drop in prepayment speeds would be good news for mortgage REITs such as Annaly Capital Management (NLY) and American Capital Agency (AGNC) as they are highly-leveraged agency REITs with a lot of prepayment exposure. Non-agency REITs such as Redwood Trust (RWT) tend to swap interest rate risk for credit risk.

Investors interested in trading in the mortgage REIT sector through an ETF can look at the iShares Mortgage Real Estate Capped ETF (REM).

Source – marketrealist.com

 

About Vestpro

Started by Mike and Kim Buish, Vestpro Residential Services is a property management company specializing in residential property management in the Houston area and surrounding cities.

Whether you are a property owner or a prospective tenant, Vestpro has the expertise to handle your property management needs.

Call us at (832) 498-0016 or click here to connect with us online

 

 

FOR RENT IN HOUSTON TEXAS – HOW TO WRITE REAL ESTATE ADS PEOPLE WILL WANT TO READ

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By Vestpro Residential Services

HOUSTON – You just purchased a new property and have already started placing ads online to market it for rent in Houston Texas but there’s a problem, nobody has responded to your ads yet or requested applications, and you’re starting to get concerned.

Did you purchase the wrong property? No. One of the biggest reasons why people have not taken an interest in your home, condo, single family home or property for rent in Houston Texas is because you may have written the rental ad incorrectly.

In today’s post we will share with you 3 tips which you should use to write effective rental property listings every time.

Tip 1 – Don’t Use ALL CAPS in Your Ads

When writing a property listing it’s important to remember that the same language which you use in real life should also apply to your ad and this includes eliminating the use of ALL CAPS in a sentence since using CAPS is equal to shouting at someone during a conversation.

Tip 2 – List the Real Benefits Your Property Offers

Besides writing good quality copy for your rental listing it’s also best to remember to list the real benefits which your property offers instead of using “real estate speak”.

What’s an example of real estate speak? 3BR/2 bath.

Instead of abbreviating everything, you should focus on telling a story and writing about the things which are nearby that will interest the renters you are interested in targeting.

Tip 3 – Take Your Time Writing the Ad

Last of all, but most important, always take your time writing your rental listing, proof read it, then ask yourself if you would be interested in living in your property.

A good “rule of thumb” is that if you can’t get yourself interested in living in your home for rent in Houston Texas then you’re not going to interest potentially hundreds of other renters too.

For Rent In Houston Texas 

For more tips on how to market your home, apartment, condo or town home for rent in Houston Texas contact Vestpro Residential Services today by calling us at (832) 498-0016 or click here to connect with us online.