Homes for sale become homes for rent
Wed, 31 Dec 2008 21:43:03 GMT —
Home prices fell 18 percent in 20 of the nation's major metropolitan areas in October.
That's the biggest annual drop since the S&P Index has been compiled.
Larger cities throughout the southeast and southwest parts of the U.S. continued to take the brunt of the impact.
Many homeowners on the Grand Strand who can't sell their homes in this economy have resorted to renting them out.
Real estate broker, Helene Lacaille said owners who can't compete with builders or the rash of foreclosures have to stop the blood-letting somehow, so they rent properties out.
She said even a few million-dollar homes in exclusive subdivisions are being rented, instead of sold.
One popular option today is rent-to-own, which Lacaille says is good for people who have trouble getting credit.
"You have time to move into a house, feel like its yours and have time to rebuild your credit, so you can cash out at the end of one, two, three years," explained Lacaille.
But Lacaille says the rental market has the same problem as the sales market. The glut of homes is driving prices down.