Market Update – Good time for landlords

Well, we all know the sub-prime lenders are going out of business… right? No big news there. So, how has that affected the market for homes in The Woodlands?
The other day an investor client of mine asked me to look at some property in Timber Ridge which is just South of The Woodlands. I found some very interesting results…

I looked at the sales and rentals in one road – Willie Way. What did I find?

It took about 70 days on average to sell a home, while it took around 22 days on average to lease a  home.

So, leasing a home happened more than 3 times quicker than the time it takes to sell a home!!

This definitely supports current market theory:

Sub-prime lenders are going out of business so financing options for sub-primer borrowers are being removed. With so many sub-prime home-owners going into foreclosure and unable to refinance or buy newer homes, they’re moving into rental properties.

It’s a good time for landlord investors. You can pick up a pre-foreclosure or a foreclosure at a good price… it really is a buyer’s market. And, fix it up and you’ll lease it within a few weeks of putting in on the market. The trick is to screen tenants well to make sure you get yourself good clients that will look after your property.