Anonymous wrote:I rented my beautiful condo for years in Ballston for at or above my mortgage no problem. This past year it sat empty unable to be rented for more than 6 months despite numerous decreases in rent to well below my mortgage. Finally put it on the market in February. Still empty. Been told several other units in my building that were regular rentals had the same problems. Don't know what's going on.

Unfortunately Rosslyn has cornered the market on soulless high rise units in metro. Huge new rentals with free promotions are your competition, and all the folks who had kids in 2000s really needing more space but still underwater so rent it out.

When did you buy?

I rented my beautiful condo for years in Ballston for at or above my mortgage no problem. This past year it sat empty unable to be rented for more than 6 months despite numerous decreases in rent to well below my mortgage. Finally put it on the market in February. Still empty. Been told several other units in my building that were regular rentals had the same problems. Don't know what's going on.

Anonymous wrote:Can you have a bubble in both the rental market and the housing market? I thought they were usually the inverse of one another. People have to live somewhere, don't they? Assuming they all aren't in shelters or their parents' basements.

No, not really. I think the OP's reference was just that it appears the rental market may be stalling, pricewise. It's not really that these markets are normally inverse, either. In fact, when there's divergence between them, it's usually a sign there's a price move coming - in either direction.

Can you have a bubble in both the rental market and the housing market? I thought they were usually the inverse of one another. People have to live somewhere, don't they? Assuming they all aren't in shelters or their parents' basements.

I am not an observer of the rental market, OP, but I take your word for it.

Thanks to the pp for raising the situation in CA.

I think someone posted a stat the other day that almost half of real estate deals are all cash transactions. At least some of those are investors who will be landlords. If they aren't going to be making money or worse, losing money, they will find an alternative investment. These all cash buyers exiting the market will put downward pressure on prices. This should encourage others to get into the market, but will they be able to get it with the tightening of lending requirements? Someone has been writing about this dilemma in the Real Estate Section in the WP and recommends lowering the credit score standards. Otherwise, we may see a pricing correcting in the real estate market.

Anonymous wrote:Wapo doesn't think rents are popping. http://www.washingtonpost.com/local/number-of-homeless-in-dc-region-rises-as-rents-increase/2014/05/14/db4638e4-dac4-11e3-b745-87d39690c5c0_story.html

I don't even need to read the article to no what Wapo thinks. They're cheerleaders for the industry.

Wapo doesn't think rents are popping. http://www.washingtonpost.com/local/number-of-homeless-in-dc-region-rises-as-rents-increase/2014/05/14/db4638e4-dac4-11e3-b745-87d39690c5c0_story.html

Anonymous wrote:If anything I think rental prices are too low. I have many neighbors who are renting for less than their mortgages

The amount of their mortgage is irrelevant to what the market will pay for rent. When looking for a rental, whether or not the rent covers the mortgage is of no concern to the renter, but whether it is competitive with comps.

Anonymous wrote:

Anonymous wrote:If anything I think rental prices are too low. I have many neighbors who are renting for less than their mortgages

No that just indicates they overpaid. Rentals are getting harder to fill, every tom dick and harry aspire to be real estate tycoon with income producing assets.

Hint if rent is less than mortgage its not income producing. Instead everyone gambling on appreciation.

This was the biggest sign of the bubble in California, which was hit hardest during the Crisis. San Diego buyers were paying a monthly premium of 40% over going rents for the privilege of owning during the height of the Crisis. I'm sure we are nowhere near that right now in the DMV, but this is the key metric to keep your eye on. If you're paying $3500 in PITI but can only get $2500 in rent, you're in a bubble and it will pop. Rent-to-PITI ratio is what matters.

I am always surprised when I see brand new townhouses put up for rent. Why would you buy brand new construction as a rental? No way you can get high enough rent to cover that mortgage.

Anonymous wrote:If anything I think rental prices are too low. I have many neighbors who are renting for less than their mortgages

No that just indicates they overpaid. Rentals are getting harder to fill, every tom dick and harry aspire to be real estate tycoon with income producing assets.

Hint if rent is less than mortgage its not income producing. Instead everyone gambling on appreciation.

If anything I think rental prices are too low. I have many neighbors who are renting for less than their mortgages

Uh huhhhhhh

Uh huhhhhhh

I'm not even talking about the glut of apartment buildings. I haven't been watching those but I'm sure there is a coming problem too with those as more buildings continue to come online.

But what I am seeing is that rentals of THs and SFHs seem to really be slowing down. I am seeing properties sit and sit and this is the prime season for rental lease turnovers. Even properties in good areas within walking distance to metro.

Are we reaching a point where people cannot count on keeping their home as a rental instead of selling it? So many people have become landlords over the past decade and I'm wondering if there are now just too many rentals out there.

There is something very strange going on in both the sale and rental market in my area and it sure seems like a pop on both of those fronts. I am specifically talking about Old Town Alexandria but wondering if it's happening elsewhere as well.