Rents are on the rise, signaling the time is ripe to buy CT homes.
A new report from the Hartford Courant and data compiler Trulia reveals Connecticut real estate is catching rebound fever as rental rates head up.
The latest stats for November show rents climbing 2.9% year over year in Fairfield, 3.3% in Hartford and 6.7% in New Haven, CT. This beats out the national average of 5.6% for the same period, marking a significant turn in the market.
For renters this means facing what could be large jumps in monthly housing expenses as leases come up for renewal. At the same time rising rents are a sign of confidence among landlords and increasing demand for rentals, meaning those who aren’t happy with demands for rental increases could face a tougher time finding alternative housing in a competitive market.
With home prices still low and mortgage interest rates still low many will find it is far cheaper to buy a home than to rent and doing so now could be one of the most profitable financial moves of their lives.
Those who put off buying a home will find rents will continue to rise, along with home prices and rates, eating away any advantages of holding off. For those who simply can’t qualify for a mortgage loan to buy CT homes right now it’s time to create a plan to get credit and finances in shape and negotiate or extend rental agreements to lock in the best terms until they can qualify.
While this may be frustrating for some renters, there is no denying that these figures are extremely encouraging for Connecticut real estate investors.
Spreads are already very attractive and are only continuing to widen. It isn’t just good for buy and hold investors either. Those focused on flipping CT homes will find demand and urgency rising among income investors who recognize the opportunity to lock into appealing cap rates and yields.
There are still a good amount of distressed properties coming onto the market in New Haven and Fairfield, CT which offer great opportunities for those ready to rehab them and get them back into rentable condition for other investors.