Planning to sell a home in the near future? Think twice before putting that sign in the yard because renting may be a smarter and more lucrative plan in today’s market. Property owners are getting top dollar for rentals, especially in the Bay Area, thanks to the high price of sales listings and an influx of residents looking to rent, rather than buy, because of the difficulty in qualifying for mortgages.
One reason: Silicon Valley is seeing strong job growth in the market; in fact, it is leading the country in this area and the driver is a surge in technology hiring associated with new and growing companies based in the area. With that growth comes a new stream of both blue and white collar employees seeking housing but unable or unwilling to buy. Added to this mix are former homeowners who fell victim to foreclosure and are now in the renter pool.
Need more hard numbers to make the case for renting? Consider that the San Jose Metro area had the highest average rent – $1,759 per month – among 43 monitored metropolitan areas according to a recent second-quarter report by RealFacts, an apartment rental research company. Cupertino and Palo Alto are pulling in rental price averages as high as $2,168 and $2,450 respectively. In addition, Silicon Valley saw the biggest increase in rentals year-over-year at 12.6%.
If you’re ready to move on from your current home, think more broadly about your options. Turning your home into a rental property may be a wise investment both in the short- and long-term. Find an agent over at MLSListings.com to get an opinion about the best option for your home, lifestyle and area.
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