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When Will the Housing Market Bottom?

The author is stating a valuation methodology, he did not state anywhere in his article all $200K homes will rent for $2K/ month. I have been buying $50K condos and renting them for $650 per month in the Portland, OR MSA. To value against this benchmark, I am getting $2,600/ month.

The author makes several good points, what he does not mention is that there is a large population of people who cannot be financed (self employed, recently BK and recently forclosed) and will only be able to purchase a home through non-traditional methods (owner contract, family monies, etc...). This large pool of captive renters are driving the prices of rents up for typical low and middle income housing. The product in the higher stratifications of the market is not desirable for rentals in this market and probably is difficult to pencil in most.

When Will the Housing Market Bottom?

The author is stating a valuation methodology, he did not state anywhere in his article all $200K homes will rent for $2K/ month. I have been buying $50K condos and renting them for $650 per month in the Portland, OR MSA. To value against this benchmark, I am getting $2,600/ month.

The author makes several good points, what he does not mention is that there is a large population of people who cannot be financed (self employed, recently BK and recently forclosed) and will only be able to purchase a home through non-traditional methods (owner contract, family monies, etc...). This large pool of captive renters are driving the prices of rents up for typical low and middle income housing. The product in the higher stratifications of the market is not desirable for rentals in this market and probably is difficult to pencil in most.

When Will the Housing Market Bottom?

The author is stating a valuation methodology, he did not state anywhere in his article all $200K homes will rent for $2K/ month. I have been buying $50K condos and renting them for $650 per month in the Portland, OR MSA. To value against this benchmark, I am getting $2,600/ month.

The author makes several good points, what he does not mention is that there is a large population of people who cannot be financed (self employed, recently BK and recently forclosed) and will only be able to purchase a home through non-traditional methods (owner contract, family monies, etc...). This large pool of captive renters are driving the prices of rents up for typical low and middle income housing. The product in the higher stratifications of the market is not desirable for rentals in this market and probably is difficult to pencil in most.