I was at a business luncheon a few weeks ago for property managers and rental owners and heard the speaker say that he has not seen the rental market like it currently is in all of his more than 30 years in the industry. Vacancy rates are at historic lows and rents continue to grow by leaps and bounds. All the while interest rates are extremely low by historic standards.
However, interest rates have begun to creep up lately. Investors continue to buy up homes to rent as well as apartment complexes. The buy and flip crowd remains strong and active and in my humble opinion is part of the reason why the overall price of homes is on the rise as fast as it is. Of course there is an overall supply shortage while demand is increasing - basic economics 101. This has really caused the cap rates to compress (go down) and drive the value of real estate up and the sales price up, but again has been justified by the low vacancies and rising rents.
Along with this cycle it has brought more construction online, but the consensus remains that it is not fast enough to keep up and so we are in and look to remain in a Seller’s Market for the foreseeable future. It is a great time to be a property management company in Salem, OR - Happy Investing!!!