I can only speak of what the numbers say here in Tampa, Fl
What I see going on is that the banks are controlling how much inventory comes on the market at one time. For example, in the last 90 days we had 2996 homes on the market and out of those 2500 sold. Which should be a good thing. However, with banks releasing inventory in control periods, what is happing is that people are thinking that it is becoming a sellers market and they want to move fast to purchase properties. Our demand is real but the supply is artificial.
I think 2012 will have more homes on the market and more homes in going into foreclosure. Just saw on the news 30,000 people or more are 90 days or more past due on their payments. From my past experience, when a homeowner is 90 days or more past due, chances of them getting current are slim. Not to mention our unemployment rate is still around 10% which does not include people who have given up looking for work. I think a combination of these factors will continue to drag down our market. I think the next couple of years will be great for rental properties.
