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The single-family rental (SFR) sector and its close cousin, the fix-and-flip market , are now essentially treading water in an environment of high interest rates , approaching 8%; high home prices; and a dearth of home-purchase inventory. in first quarter to 27.5% Sector leaders are predicting more of the same for 2024.
While those folks may not have the liquidity to buy another house while they decide on what to do with their destroyed home, there are scenarios where they add competition to a market thats already starved for inventory. And landlords are already smelling an opportunity to raise list prices, despite laws designed to prevent that.
TRANSCRIPTION: If you’re buying, selling, divorcing, filing bankruptcy, fighting your propertytax bill, etc…it’s super important to value your real estate correctly. There are a lot of other products that we can do and the last will be propertytax appeals which have been big over the last several years.
When you own a home you are responsible for the real estate taxes, homeowners insurance, homeowners association fees, maintenance, repairs, upkeep and the like. Renters just pay the monthly rent and the landlord pays the mortgage and all the other costs. This is mostly due to the low inventory of homes available for sale.
This is especially true when housing inventories are low -- a perfect illustration of money supply outpacing economic growth. Mainstream wholesalers are often most interested in distressed properties so it is doubtful that inflation will significantly make purchases cost prohibitive. What about investors, who both buy and sell?
OLYMPIA HOUSING UPDATE Despite a short session this year, lawmakers in Olympia were successful in passing 11 known pieces of legislation that serve to help home buyers and sellers as well as landlords and tenants. Annual propertytaxes are, gulp! Possibly the most notable bill to reach Gov. Good things come to those who wait!
Agents looking to specialize in an outdoor amenities niche might consider: Lakefront homes Mountain homes (think: the Adirondacks) Oceanfront or beachfront property Ski/Snowboarding resort properties (think: Whistler or Aspen) Farmland Vacant land Properties in these niches may have unique propertytaxes, zoning or development regulations.
The shock is felt across city leadership, office landlords and bankers who lend millions to property owners. The fallout could be dire for landlords facing mounting debt amid sagging revenue. King County single-family owners – of which there are 489.6K – paid $4.57B in propertytaxes, or an average of $9343 per household.
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