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2011 Spring Parade of Homes

Tuesday, April 5th, 2011

Please join us for the upcoming Spring Preview Parade of Homes event.  The parade will be held April 9th, 10th, 16th & 17th from 1:00 p.m. – 5:00 p.m.  As always, the parade of homes is free to the public.

Many of the top builders in the Quad Cities participate in this event as it showcases new building trends in new construction homes. There are over thirty homes to tour with close to half of them being held open by Ruhl&Ruhl agents.  Please see the homes Ruhl&Ruhl agents are showing below:

This is a great event and Ruhl&Ruhl REALTORS looks forward to participating it in every year.  This year there is over $1,000 in prizes that the public is able to enter to win at each home on the tour.  For a full list and map of the homes being held open please check out www.qchba.com.

A family-owned company since 1862, Ruhl&Ruhl REALTORS annually sells nearly 3,800 homes in eastern Iowa, western Illinois and southwestern Wisconsin. Caroline Ruhl is the President and owner of Ruhl&Ruhl REALTORS, and is the fourth generation of the Ruhl family to lead the residential brokerage and home services company.  Headquartered in Davenport, Iowa, the company has 265 sales associates and 50 employees based in sales offices located in Bellevue, Bettendorf, Cedar Rapids, Clinton, Coralville, Davenport, DeWitt, Dubuque, Maquoketa, and Muscatine, in Iowa, and in Moline, Illinois.  In addition to residential sales, Ruhl&Ruhl offers services in relocation, new home sales, farm and land sales, senior services, real estate investment, property management and mortgage services through 1862 Mortgage and insurance services through Nelson Brothers Insurance.  For more information on Ruhl&Ruhl, visit their website at www.RuhlHomes.com .

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Iowa Farmland Increased 25.4% in Value

Tuesday, March 29th, 2011

The value of cropland across the state of Iowa is dramatically on the rise, along with high demand.

“Demand for cropland in our area is the strongest I’ve ever seen,” said Tom Marcus, Ruhl&Ruhl Realtor in the Maquoketa area, who has been selling farmland since 1975. “In greatest demand is high quality cropland Corn Suitability Rating of 80 or higher, followed by average Corn Suitability Rating of 60+, which includes a lot of land in our area.” 

The Land Trends and Value Survey, presented by the Iowa Farm and Land Chapter #2 REALTORS Land Institute, reported a statewide average increase of cropland values of 25.4% for the year from March 1, 2010 to March 1, 2011.

The survey attributed the increase to several contributing factors, including strong commodity prices, favorable long-term interest rates, limited amount of land offered for sale, lack of alternative investments, higher livestock prices and fear of inflation. 

“The combination of strong demand and short supply of land has only been further fueled by high commodity prices in both grains and livestock,” said Eric Schlutz, Ruhl&Ruhl Realtor in the Muscatine area and Manager of the Muscatine Office.

Not many farms are currently being offered for sale in our area due to the good grain sales and good cash rents, Marcus said, adding that this is a large factor in land values increasing recently.

For the survey, participants are asked to estimate the average value of farmland as of March 1, 2011. These estimates are for bare, unimproved land with a sale price on a cash basis. Pasture and timberland values were also requested as supplemental information.

All nine Iowa crop reporting districts showed an increase. The districts varied from a 15.9% increase in Central Iowa to a 26% increase in West Central Iowa from just September 201 to March 2011. The East Central district, where the majority of Ruhl&Ruhl offices are located increased 19.9% in the past six months and the Northeast district, where the company’s Dubuque office is located, increased 19.3%.

“With the high grain prices and great long-term prospect for grain sales domestically and foreign sales, the farmers in eastern Iowa have a very positive outlook for the future,” Marcus added.

A family-owned company since 1862, Ruhl&Ruhl REALTORS annually sells nearly 3,800 homes in eastern Iowa, western Illinois and southwestern Wisconsin. Caroline Ruhl is the President and owner of Ruhl&Ruhl REALTORS, and is the fourth generation of the Ruhl family to lead the residential brokerage and home services company.  Headquartered in Davenport, Iowa, the company has 250 sales associates and 50 employees based in sales offices located in Bettendorf, Cedar Rapids, Clinton, Coralville, Davenport, DeWitt, Dubuque, Maquoketa, and Muscatine, in Iowa, and in Moline, Illinois.  In addition to residential sales, Ruhl&Ruhl offers services in relocation, new home sales, farm and land sales, senior services, real estate investment, property management and mortgage services through 1862 Mortgage.  For more information on Ruhl&Ruhl, visit their website at www.RuhlHomes.com .

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Military Homebuyer Tax Credits Still Available!

Monday, March 21st, 2011

Although the Homebuyer Tax Credit has expired for most of the population, Ruhl&Ruhl REALTORS would like to remind the public that there are still homebuyer tax incentives available for our service personnel.

For the qualified members of the military who are ordered on a period of official extended duty, the Homebuyer Tax Credit was extended for one year. For these homebuyers, the tax credit applies to sales with a binding sales contract in place on or before April 30, 2011 and closed by June 30, 2011. First-time homebuyers may be eligible for a tax credit of up to $8,000 on the purchase of a home and move up or repeat homebuyers may be eligible for a tax credit of up to $6,500.

A person that is forced to return to the U.S. for medical reasons before completing an assignment of at least 90 days of qualified official extended duty outside of the United States may also qualify for the one-year extension.

“Congress acknowledged the unique situations affecting members of the military, the Foreign Service and the intelligence community and passed this extension in 2009,” said Veronica Pianca, Vice President of Relocation and Business Development for Ruhl&Ruhl REALTORS.

$8,000 First-time Homebuyer Tax Credit at a Glance

  • The $8,000 tax credit is for first-time homebuyers only. For the tax credit program, the IRS defines a first-time homebuyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
  • The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
  • The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
  • The tax credit applies only to homes priced at $800,000 or less.
  • For homes purchased after November 6, 2009 and on or before April 30, 2011, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

 

The $6,500 Move-Up / Repeat Homebuyer Tax Credit at a Glance

  • To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years. 
  • The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
  • The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
  • The tax credit applies only to homes priced at $800,000 or less.
  • Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit. 

*Everyone’s situation is different.  Please consult your tax professional or attorney to determine your eligibility. For more information visit RuhlHomes.com/tax-credit or www.irs.gov. 

A family-owned company since 1862, Ruhl&Ruhl REALTORS annually sells nearly 3,800 homes in eastern Iowa, western Illinois and southwestern Wisconsin.  Caroline Ruhl is the President and owner of Ruhl&Ruhl REALTORS, and is the fourth generation of the Ruhl family to lead the residential brokerage and home services company.  Headquartered in Davenport, Iowa, the company has 250 sales associates and 50 employees based in sales offices located in Bellevue, Bettendorf, Cedar Rapids, Clinton, Coralville, Davenport, DeWitt, Dubuque, Maquoketa, and Muscatine, in Iowa, and in Moline, Illinois.  In addition to residential sales, Ruhl&Ruhl offers services in relocation, new home sales, farm sales, senior services, real estate investment, property management and mortgage services through 1862 Mortgage.  For more information on Ruhl&Ruhl, visit their website at www.RuhlHomes.com.

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Ruhl&Ruhl REALTORS Partners with Nelson Brothers Insurance

Thursday, March 10th, 2011

Ruhl&Ruhl REALTORS and NAI Ruhl & Ruhl Commercial Company are partnering with Nelson Brothers Insurance to expand our offerings and provide insurance services to our clients.

“With their commitment to integrity and customer service, as well as being a locally-owned and family-operated company, it was a natural fit,” said Caroline Ruhl, President of Ruhl&Ruhl REALTORS. “Ruhl&Ruhl is very excited to be able to provide insurance options for our clients as an extension of our real estate and mortgage services. We will truly be a one-stop shop, further simplifying the process of buying or selling a home.”

Currently, Nelson Brothers Insurance serves insurance needs of about 12,000 individuals and families, and 750 businesses in eastern Iowa and western Illinois and has been providing quality coverage and consultation for over 100 years. The independent agency offers sound, impartial advice and provides personal coverage, business coverage and financial coverage through a select group of reputable insurance companies.

“We know our companies will work hand-in-hand to provide the utmost service and care for our clients,” said Mike Nelson, President of Nelson Brothers Insurance. “All of our companies are based around family, from being a family-run business to serving the needs of the families in our communities. It really is the perfect relationship.”

In addition, Nelson Brothers Insurance will serve NAI Ruhl & Ruhl Commercial Company, the region’s leading commercial real estate firm specializing in commercial real estate brokerage, business brokerage, property management, development and maintenance services, with offices in the Quad Cities, Des Moines, and Dubuque, IA.

“Every commercial brokerage transaction we complete and every property management client we serve has an insurance need as part of the transaction,” said John G. Ruhl, Vice President and Sales Manager of NAI Ruhl & Ruhl Commercial Company. “This new partnership will enable us to offer one more high quality service to our clients.”

A family-owned company since 1862, Ruhl&Ruhl REALTORS annually sells nearly 3,900 homes in eastern Iowa, western Illinois and southwestern Wisconsin.  Caroline Ruhl is the President and owner of Ruhl&Ruhl REALTORS, and is the fourth generation of the Ruhl family to lead the residential brokerage and home services company.  Headquartered in Davenport, Iowa, the company has 257 sales associates and 46 employees based in sales offices located in Bellevue, Bettendorf, Cedar Rapids, Clinton, Coralville, Davenport, DeWitt, Dubuque, Maquoketa, and Muscatine, in Iowa, and in Moline, Illinois.  In addition to residential sales, Ruhl&Ruhl offers services in relocation, new home sales, farm sales, senior services, real estate investment, property management and mortgage services through 1862 Mortgage.  For more information on Ruhl&Ruhl, visit their website at www.RuhlHomes.com.

For more information on NAI Ruhl & Ruhl Commercial Company, visit their website at www.RuhlCommercial.com.

For more information on Nelson Brothers Insurance, visit their website at www.nbaschroder.com.

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7 Tips for Short Sale Success

Tuesday, March 8th, 2011

When you owe more on your home than its worth, but you have to sell, you need to squeeze every dollar possible from the sale. Here are seven tips for navigating the short-sale process.

1. Know who you owe

A short sale has to be approved by any company that has a mortgage or lien against your home. That includes your first, second, or even third mortgage lender, your home equity line lender; your homeowners or condominium association; and any contractors who’ve placed a lien on your home. Make a list and start talking to everyone early in the process. Ask what documents they’ll need from you.

2. Pick your short sale team

You’ll need to work with a team of short sale experts, including a real estate agent, real estate attorney, and your accountant. Look for agents and attorneys who advertise themselves as short sale experts. Interview at least three, and listen carefully for signs that they understand the complexities of the short sale process.   At Ruhl&Ruhl REALTORS we have many agents that are experienced and trained in the short sale process, if you need any help understanding the short sale process please contact Ruhl&Ruhl.

A real estate agent will explain how they arrived at a suggested price for your home. Ask them to show you a sample short-sale package or for an example of a prior short-sale success.

3. Get your documents ready

Gather the paperwork your creditors and mortgage lenders asked to see, like your listing agreement and a hardship letter explaining why you need to do a short sale. You’ll also need proof of what you earn and what you owe as well as copies of your federal income tax returns for the past two years.

4. Expect delays

Despite a federal rule saying banks participating in the federal government’s Making Home Affordable loan modification program must respond to short-sale offers within 10 days, it may take weeks or months for your lender to decide whether to allow you to sell your home in a short sale—and even longer if you must negotiate with more than one lender or lienholder.

Your lender and lienholders don’t have to agree to your proposed short sale. They can reject your terms or make a counteroffer, which can create further delays.  A trained real estate professional will help you anticipate these delays and can give you advice if your lender does reject the short sale or counteroffers.

5. Anticipate demands

Discuss with your short-sale team how you should respond to common short-sale demands from lenders. For example, are you willing to sign a promissory note agreeing to pay outstanding amounts after the sale is complete?

6. Know the tax implications

Any unpaid amount of your mortgage “forgiven” by your lender through a short sale may be considered income to you under federal tax rules. Ask your attorney or accountant whether you qualify to exclude that amount as income on your tax returns under the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act. Also ask if you’ll be required to report amounts “forgiven” by other lienholders, if applicable.

7. Consider how the short sale will affect your credit and what you must pay

Ask whether your lender will report the short sale to credit-reporting agencies. Having a portion of your debt forgiven may negatively affect your credit score, but a short sale typically damages your score less than a foreclosure or bankruptcy.

Ask you lawyer whether you’ll be responsible for paying back the lenders’ loss. If the lender says it will forgive any losses on the sale of your home, get that promise in writing.

Many families across the US are exploring the short sale option; you are not the only one.  Ruhl&Ruhl REALTORS is here to help in any way to make the process as easy and convenient for our families as possible.  If you would like the help of an experienced and trained Ruhl&Ruhl agent please contact us through our Customer Service department, toll free at 866.441.1776 or visit us on our webpage at RuhlHomes.com

This article includes general information about tax laws and consequences, but isn’t intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws may vary by jurisdiction.

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Selling Your House? 5 Reasons To Do It NOW!

Friday, February 18th, 2011

The conventional wisdom when selling a home has always been to wait until the ‘Spring Buying Season’. Over the years, that has seemed to make sense and is now accepted as a good strategy for those who want to sell their house and receive the best possible price. This real estate market has shattered many previously held beliefs. The wisdom of waiting for a spring market is another belief that is about to fall. Here are five reasons why?

1.) Interest Rates Are On the Rise

Interest rates have spiked up rather dramatically over the last ninety days and are now over 5%. Initially, an increase in rates has a positive effect on the market as it forces buyers off the fence. However, it also eats into a buyer’s purchasing power. As rates increase, the mortgage amount a buyer qualifies for decreases. This will eventually have a negative impact on prices.

2.) Your Dream Home Will Never Be Cheaper

If your family goal is to sell your current house and take advantage of the fabulous selection of properties currently available to buy the home of your dreams, DO IT NOW! Prices will continue to soften in most markets. However, if you are buying, COST should be more important than PRICE. Cost can be dramatically impacted by rising mortgage interest rates. Do the math and decide if now is the time.

3.) Buyers Are Out Early

There is mounting evidence that buyers are coming out earlier this year. A belief that now is a good time to buy coupled with the increase in interest rates has started the buying season early.

The National Association of Realtors just reported that the number of house sales increased 12.9% over last month.

4.) Inventory Increases Every Spring

Every year there is an increase of inventory which comes to market as we approach the spring. Here is the number of listings available for sale in 2010.

  • February – 3,531,000
  • March – 3,626,000
  • April – 4,029,000

We believe there will be an increase in these numbers in 2011 as there is a pent-up selling demand created by the weak market of the last few years. You won’t have to worry about this increasing competition if you sell now.

5.) We Are in the Eye of the Foreclosure Storm

While banks are trying to rectify their foreclosure procedures, there is a large supply of discounted properties which has been delayed coming to market. This inventory will be released sometime in the next few months. Foreclosures sell on average at a 41% discount. When released they will be competing with your house for the buyers in the marketplace. If you are looking to sell in 2011, you want to sell before this inventory becomes your competition.

CNN Money quoted the leadership Of RealtyTrac on this issue:

“We’ve now seen three straight months with fewer than 300,000 properties receiving foreclosure filings, following 20 straight months where the total exceeded 300,000,” said James Saccacio, CEO of RealtyTrac.

“Unfortunately,” he added, “This is less a sign of a robust housing recovery and more a sign that lenders have become bogged down in reviewing procedures, resubmitting paperwork and formulating legal arguments related to accusations of improper foreclosure processing.”

“We expect a spike in the first quarter,” said Rick Sharga, a RealtyTrac spokesman.

Bottom Line

These are five strong reasons to sell now instead of waiting until later in the year. Sit down with a local real estate professional today and decide the best options for you and your family.

Ruhl&Ruhl REALTORS would be happy to help you with your decision.  If you do decide now is the time to buy we can help! Contact us in any one of our 10 real estate offices ranging from markets in the Quad Cities to Iowa City.  

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Does It Make Sense To Buy a Home?

Thursday, February 3rd, 2011

The financial turmoil we have experienced over the last five years has definitely taken it’s toll. It has especially been a difficult time for real estate. Nationally, values have fallen over 25% and there may be more softening in prices to come. We realize that this has caused difficulty, and in some cases, heartbreak for many families. People unable to make their mortgage payments have been forced to sell or, even worse, have faced foreclosure.

However, the thing that has continued to amaze us is the country’s steadfast belief in the benefits of homeownership even in these most difficult of times. The vast majority of Americans still realize that the value of a family owning a home goes far beyond just the financial considerations.

There have been three major surveys done in the last 75 days delving into Americans’ current belief in the value of owning a home:

  1. The National Housing Survey by Fannie Mae this past November.
  2. The Housing Survey by the Gallup Organization completed last month.
  3. The American’s Attitudes About Homeownership (AAAH) study completed by Harris Interactive for the National Association of Realtors.

Each showed the country still believes that buying a home makes all the sense in the world. Let’s consider some of the findings:

Is owning a home good for a family?

  • In the AAAH study, 87% of homeowners and 64% of renters believed that “owning a home provides a healthy and stable environment for raising a family”.
  • The Fannie Mae study showed that the main reason people gave for buying a home is that “it is a good place to raise children and provide a good education”.

Has owning a home been a positive experience?

  • AAAH: The study shows that an astonishing 88% say it has been “a positive or very positive experience”. An overwhelming majority of home owners are happy with their decision to own a home. A full 93% of owners surveyed would buy again.
  • Fannie Mae: The study shows that 95% see homeownership as a “positive experience” for them and their families.

Do renters aspire to own a home?

  • AAAH: Most renters aspire to home ownership. The majority of renters (63%) say they are at least somewhat likely to purchase a home at some point in the future. Among them, young adults (18- to 24-years-old) have the strongest aspirations for home ownership.
  • Fannie Mae: 67% of renters plan to purchase a home in the future.

Is now a good time to buy a home?

  • AAAH: 78% of homeowners and 58% of  renters believe now is a good time to buy.
  • Fannie Mae: 64% of those surveyed said it is a good time to buy a home.
  • Gallup Poll: 67% of Americans think now is a good time to purchase a home.

Bottom Line

Surveys after survey report Americans believe two things: that there is a value in owning a home and that now is the time to buy!! What are you waiting for?

Keep checking RuhlHomes.com for the most up to date information on the real estate market!

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Where Are Housing Prices Headed?

Tuesday, February 1st, 2011

The National Association of Realtors (NAR) has been reporting great news recently. Last week’s Existing Home Sales Report and this week’s Pending Sales Report both showed consecutive months of increases in the number of homes sold. Finally, buyers are jumping off the fence and taking advantage of one of the most opportune times to purchase a home in America’s real estate history. With an increase in demand, price appreciation can’t be far behind, can it?

Actually, the answer is NO! Prices are not determined by demand alone but in the relationship of demand to available supply. The inventory of homes for sale is still too high and about to surge higher. Along with the news of increased demand yesterday, RealtyTrac released their 2010 Year-End Metropolitan Foreclosure Market Report. The report showed that distressed properties across the country are on the rise:

… foreclosure levels remained five to 10  times higher than historic norms in most hard-hit markets, where deep  fault lines of risk remain and could potentially trigger more waves of  foreclosure activity in 2011 and beyond.

The report also explained that the foreclosure epidemic is spreading to more and more of our communities:

… foreclosures became more  widespread in 2010 as high unemployment drove activity up in 72 percent of the  nation’s metro areas — many of which were relatively insulated from the initial  foreclosure tsunami.

What does this mean for prices?

Here are a few quotes from this week.

Washington Post:

The closely watched S&P/Case-Shiller report shows that housing prices, compared year-over-year, have declined nationally for six consecutive months. The downward path suggests that housing prices could, by spring, hit their lowest level since April 2009, said David Blitzer, the index committee’s chairman.

New York Times:

A new slide in housing prices has begun in earnest, with averages in major cities across the country falling to their lowest point in many years.

CNN Money:

Barclay’s Bank analyst Theresa Chen doesn’t expect a reversal in housing market trends any time soon, since there is no end in sight to the foreclosure crisis.

“We expect softness to persist,” she said, “as home prices continue to face headwinds from the large pipeline of foreclosures entering the market.”

Housing Wire:

“… we believe that home prices will continue to weaken on a month-over-month basis until spring, and a year-over-year basis through the end of 2011,” the Radar Logic said.

Bottom Line

Prices will continue to soften in the first half of 2011 in most regions of the country. This information should be taken into consideration if you plan on selling your house in the next twelve months.

Keep checking RuhlHomes.com for the most up to date information on the real estate market!

Originally Published By: KCM Blog

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Housing Market in Q-C ‘bubbling’

Wednesday, January 26th, 2011

The Quad-City housing market remains strong, according to the annual prediction of a national real estate firm.
Housing Predictor, an independent real estate research firm based in Destin, Fla., ranked the Quad-City region 24th on its Best 25 Real Estate Markets, according to editor Mike Colpitts. The ranking looked at 234 U.S. markets.
The survey evaluated the Quad-City multiple listing service, or MLS, which includes Scott, Rock Island, Mercer and Henry counties.
“We are doing OK. This prediction is coming out at the worst time of the year and we are still leading the pack,” Shane Johnson, chief executive officer of the Quad-City Area Realtor Association, said.
“The winter months are normally slow in the real estate industry,” said Michael Banks, chairman of the association. “This year, however, things are bubbling more than they have in the past.”
Portland, Maine, topped the list with projected appreciation in local home values rising 3.6 percent in 2011. The Quad-Cities had projected appreciation of 2.5 percent in the coming year.
Colpitts said Housing Predictor did an updated forecast for 2010 in August and the Quad-City MLS ranked 19th with a projected 4.2 increase for 2010. By the end of the year, the market actually finished at 3.3 percent, he said.
“That was 3.3 percent for the market for the full year. That is still a pretty good forecast when compared to the majority of country,” he said.
“The Quad-City area is recovering more quickly than much of the nation, in part, because local lenders and Realtors, perhaps tempered by Midwestern values, were more careful in their practices than those from other cities,” Johnson said. “And, generally our market is more stable which allows us to avoid the huge swings that have played havoc in other areas.”
More than 15 states are projected to experience housing appreciation during the year, based on the annual report. Four Iowa cities were listed among the 25 best markets: Iowa City, seventh at 3.2 percent; Cedar Rapids, 22nd at 2.6 percent; Des Moines, 23rd also at 2.6 percent.
“While these numbers don’t approach the gains we’ve seen in the past, it is encouraging to see improvements in our market and to see where we stand nationally,” Banks said in a news release.
The list of the 25 worst housing markets for 2011 was topped by Bend, Ore., with anticipated reduction in home values of minus 11.5 percent. Rounding out the bottom five were Las Vegas; Atlantic City, New Jersey; Miami, and Medford, Ore.
Keep checking RuhlHomes.com for the most up to date information on the Quad Cities real estate market!

Article Published in the Quad City Business Journal, January 21, 2011.

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Rental Prices Jump 11.6 Percent in 2010

Thursday, January 13th, 2011

 You would think that with the housing crisis in full swing that there would be so many homes available to rent that rental prices would go down. Seeing the recent numbers from HotPads you would be wrong.

The average rental price in 2010 increased by 11.6% during the year.

That is a huge jump on many levels:

  • For families on a fixed income, that extra rent keeps people from spending their money on other things. 
  • New couples that are saving to buy are seeing higher rents that push them that much further from their goal.
  • Meanwhile, there are the families that have lost their homes in foreclosure who are in the rental pool that now are paying the increased rent and squeezing their household budgets that much more.

The one good news out the of report is that with housing prices going down and rental prices going down, the Rent-Buy ratio is shrinking. From a rent to buy ratio in 2009 of 15.66 we are now down to a 12.64 at the end of 2010. That means that when families are looking at the cost of buying versus renting they will be more inclined to buy.

As an industry we need buyers to absorb the inventory we are sitting on. Till that day, housing prices will not firm up on a nationwide level and there will be an increased demand for rental units. It is a market and the equilibrium will need to be re-established after the housing boom so all is not lost.

It is just taking longer than any of us expected…

The rental price increase is a factor of uncertainty in the US economic climate, which has forced a transition from a home buying mentality to one more in favor of renting. The growing number of homes lost to foreclosure in 2010 expanded the number of people seeking to rent, creating a renter surplus.

Further, with the US unemployment rate over 9% throughout 2010 (up from 4% in 2006), low risk housing options became more desirable, a trend which may continue in the coming months.

At the same time, HotPads expects to see foreclosed and long standing for sale properties re-enter the market as rentals, which should expand the rental supply, thereby helping ease rent prices. This represents an interesting contrast to the peak of the housing market in 2006, when rental units were being converted into for-sale condos.

If you are contemplating renting vs. buying Ruhl&Ruhl REALTORS would love to help.  We have plenty of buyer resources located on our website; RuhlHomes.com as well as our large group of Real Estate Agents located in 8 Real Estate Markets from the Quad Cities to Cedar Rapids.   Let us help you make this transition easy and worry free.

Keep checking RuhlHomes.com for the most up to date information on the real estate market.

Some statistics and information provided by: The Real Estate Bloggers & HotPads

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