Jul 9, 2012

The red-hot real estate market is getting hotter

According to Niche Report., the red-hot real estate market is getting even hotter thanks to regional property appreciation. This situation was recently reported by online real estate market analysis site Trulia, and it is bound to attract more real estate investors to some metropolitan areas where urban dwellers are taking a break from the American Dream of home ownership in favor of lease agreements.

According to the figures released by Trulia, monthly rents in the United States climbed by 5.4 percent on an average basis since June 30th of the previous year. This increase is not surprising given the pace of foreclosures over the last few years, as well as the incredibly strict credit and lending guidelines imposed on mortgage applicants.

In some metropolitan areas like San Francisco, renters are now paying almost 15 percent more than in 2011. This has had a positive, yet disproportionate, effect on real estate values in the San Francisco market, where residential properties are now priced 2.5 percent higher than they a year ago. A similar situation can be observed in nearby Oakland, where rents went up by 10 percent, although home purchase prices barely inched up compared to twelve months ago.

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