Albemarle County Real Estate

The sharply declining home sales of the past year in the Albemarle county real estate market and other parts of the country have been as a result of not only long term residents staying away from new properties, but of investors staying away as well. In fact with the real estate market in the state it’s in, many investors who bought homes with ARM mortgages with the sole intention of later flipping the property for a profit are now stuck with undervalued property (in their eyes at least) and the prospect of their ARM’s hitting the recalculation point in the near future and the minimum payments rising dramatically. As a result houses bought solely for investment purposes have fallen considerably in the past couple of years.

Many people blame these speculative or investment buyers for the booming prices that engulfed real estate nationwide in years past, so there’s not a lot of sympathy to go around for these people now stuck sitting on their unwanted properties. It has certainly left these homeowners in an awkward position though. Do they hang onto the property until the market rebounds, though that likely won’t happen until well after their ARM’s have been readjusted, or do they lower their prices now to get rid of the property as soon as possible and take their lumps? What some are doing is turning those properties into Albemarle rental homes for the time being, to tide them over until the market rebounds. With home prices down 10% across the country, this is a viable alternative for people who don’t want to let their property go for current market value, but can’t otherwise afford to hang onto it without help.

While vacation rental property sales fell 30.6% last year, and retail rental properties have seen a similar downswing, the home rental market has actually seen an upswing. With many people being left on the outside of the mortgage fence looking in, as lenders continue to tighten their standards, these people have turned to the rental market instead as a temporary alternative. The increasing number of rental properties and the increased demand for those properties has sent figures for residential rentals soaring.

With real estate Albemarle Va. At its lowest point in years, this is certainly a viable solution for property owners looking to wait out the storm. Some things that will need to be considered are the types of tenants you’ll allow in your building(s), and whether you’ll allow pets on the property. You may also want to consider hiring a professional service for the upkeep and maintenance of the property(s), especially if you have more than one up for rental.

With homes at rock bottom prices, you may even consider getting into the market now with the intent being to rent the property for a few years right out of the box, and then sell it down the line when its value has risen. If you can get the financing, there’s never been a better time than now to make this happen. Contact a local Albemarle county real estate agent to discuss your options regarding rental properties and home ownership today.

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Toby Beavers

877-855-7913