A $700,000, six-bedroom brick house off Nutley Street in Vienna was snapped up in three weeks, listing Realtor John Nguyen reported. The reason was very simple: Instead of waiting around to be sold, it was leased for one year at $2,750 per month.
“The owner thought that in these current market conditions, it was better to rent it out than to put it on the (sales) market and wait for several months,” said Nguyen, at Long & Foster in Falls Church.
That “several months” is no exaggeration. The average home stayed on the market for 65 days this June according to the Northern Virginia Association of Realtors monthly sales report.
“The rental market is pretty hot,” agreed Bill Owens, a rental specialist at Long & Foster in Vienna. “People are afraid to buy. They are waiting to see what will happen in the market.” As a result, he added, rental prices are going up and waiting times are going down.”
Sellers have just as much reason for going the rental route, he explained.
That same trend continues throughout the country. “In many areas, buildings constructed as condos are now being turned into rental projects,” the National Association of Realtors reports. “The demand for apartments remains strong, but new supply is essentially matching leasing activity.”
For all price ranges, the NVAR has one simple rule: “The rental and sales markets are inextricably linked.” In general, when the sales market is hot, the rental market slows down,” and the other way around.
By Jackie Friedlander, TimesCommunity.com
