The ranks of renters are set to rise rapidly in the coming months, both from a demographic and mortgage market perspective. A number of buyers will no longer qualify for new mortgages. They still need to live somewhere, and will end up being renters. In addition, echo boomers continue to enter the marketplace. This bodes well for rising rental rates.
So, declining rates mean lower payments, while rising demand for rentals will translater to increasing rental rates. Both will help absorb the over supply of units and set up the bottom for the next up cycle.
Those that understand the distinction between cycles and trends see that this is a time for acquisition. The overbuilding has stopped new construction in its tracks and that's good for real estate investors.
With the population growing by 1% a year, or almost 300,000 people a year, the demand for homes isn't going away, it is just being delayed.
It is not a well known fact but more millionaires were created during the Depression than any other time in U.S. history.
When there's blood on the street, that is the time to buy. Buyers today have an opportunity to build portfolios of foreclosures, bulk reos, cash flowing real estate with no financing/bank involvement and buy single family homes for cash
