This is an interesting article regarding the national real estate market and how rental prices can stimulate home buying. In a ski resort town this impact will not necessarily be noticed as much right away, but as rental prices increase and more individuals purchase rather than rent this will eventually lead to stabilization of the market as supply decreases and appreciation is once again realized. As appreciation begins elsewhere in the nation we will be right behind the national trend here in the Crested Butte real estate market. How long this process for the real estate market to correct itself is the big question, but that fact that the numbers are again beginning to show it’s better to buy than rent shows at least it has started.
Corey Dwan – REALTOR
Benson Sotheby’s International Realty
P.O. Box 210
433 Sixth Street
Crested Butte, CO 81224
970-596-3219 Cell
970-325-3219 World Wide Cell
970-349-6653 Office
970-797-1810 Fax
www.CrestedButteForSale.com
By Shawn Tully, senior editor at largeFebruary 12, 2010: 2:49 PM ET
NEW YORK (Fortune) — It may not be the most widespread measure of housing prices, but if you want to follow a powerful driver, look at rents.
Specifically, it’s the rents Americans pay on condos, apartments or houses that are about the same size, and share the same neighborhood as your ranch or colonial, that in the end determine what your house is worth.
“If you look at the trend in rents to see where housing prices are headed, you’re looking at the right measure,” says Yale economist Robert Shiller.
In recent reports, Deutsche Bank demonstrates how steady or even falling rents have pulled down housing prices, to the point where in many markets it costs about the same amount to own as to lease. That’s a golden mean that America hasn’t seen in almost a decade. The DB research also offers convincing evidence that the wrenching adjustment in housing prices is finished for much of the nation, with a bit more pain to come in selected areas.
Read more at CNN Money