Existing Home Sales Set 9-year Record

National Association of Realtors reported 6/22/16) sales of existing homers rose to the highest level in more than nine years in May due to signs of rising demand with steady job creation and low interest rates. The new seasonally adjusted sales rate is 5.53 million. The national median sale price of previously owned homes was almost $240,000, the highest figure on record. These results are even more remarkable when inventory levels remain at historically tight status with no relief expected from new Home Builders or homeowners listing more houses for sale. For investors this means if you can partner with highly sophisticated professionals who can pinpoint the houses that work to return investor Capital as rentals, and can buy those houses instantly when they come on the market before a bidding process unfolds, it is an historically ideal time to be an investor in single-family homes for rent.

The other WSJ item today, the millions of Amricans no longer in subprime credit status means more qualified renters, defined by no more than 30% of gross income for rent)  The subprime category had peaked at 25.5% of borrowers now has dropped to 20.7%. And default levels – percent of loans in default- have dropped below 1%, a healthy economic signal. With $1Trillion in student debt and a run up in subprime lending in the past two years that has propelled new car sales, this overall report card on improved consumer credit is great news for investors in real estate for rent, either single-family homes or multi-family.