Jonathan Miller has fired some people up with his post about a possible "bounce back" in the market.
The consumers are being faced with high housing costs in either the rent or buy scenario. We are seeing some would-be renters return back to the purchase market in rising numbers…The Bounceback. Not a wave, however, but a noticeable increase.
Its going to be interesting next spring, with several factors in the purchase market’s favor: rents will likely be higher than they are now [Col], mortgage rates are projected to be at or below current levels [SeekingAlpha/WSJ] and, assuming housing prices remain relatively stable, those renters who moved en masse that signed leased last spring have to make the tough choice again. The rental market has the advantage of safety. That doesn’t make the decision any easier. Its difficult go through the bounceback.
There are a lot of very frustrated people out there who just can’t stomach the possibility that the market may make any kind of forward movement–particularly those who still don’t own. It’s a numbers game. Miller is absolutely right that as rental prices increase along with condominium supply, more people are likely to come back to the purchase market. This is such a bizarre city and with rental vacancy rates at historic lows, ownership or exodus are the only other alternatives for many.