All Forum Posts by: Phillip Dwyer

Another way to look at the market is by how many months of supply are there and how long is it taking for houses to sell. The MLS data shows that the supply ticked up ever so slightly in terms of months supply from 1 month supply in March to 1.1 months supply in April. Average days on market actually went down from an average of 21 days to 18 days. The median days on market was 7 for both months. If you just look at gross number of listings as the metric and don't put any historical seasonal factors into consideration, it will look like the market is starting to shift fast. Inventory does typically build in the spring as sellers get ready for the typical buying season. So far, I'm not seeing the numbers dictating a slow down. I just had 20 offers on a listing, so I'm not seeing it on a practitioner's level either.

However, rates are going up, so it's important to watch all of the inputs:  new listings, days on market, absorption rate, ect.  

@Michael Wallimann A lot of the meet ups dried up during the covid shut down.  I haven't been to any since re-opening.  Check meetup.com as a good resource to find active groups.

Have you considered hiring an eviction attorney for a 1 hour consultation?  If allowable, I'd move on from this tenant as soon as possible.

Get a new unit.

Additionally you have the tricky part of finding a replacement property in time to meet the deadlines in a very under-supplied market (at least locally anyway).  

Bill's correct.  The buyer would have to honor the terms of the lease, so an extension has the potential to kick some buyers out of the game.  It's not just the lease that's the issue here though.  Tenants have zero incentive to keep the house nice for showings, be available for all showings, answer the phone, flush the toilets, ect.  Sure this is a hot market, but these things still impact the sale.  

What are the renovations you think are needed?  Are we talking carpet and paint, or do you need full rehabs on the kitchens and bathrooms?  

@Darius Ogloza. I usually advise against selling with a tenant in place if you have a choice.  In the current market, it may not impact you as much.  However, you will be wiping out a huge percentage of the buying pool.  This will especially be the case if you lock in the tenant in a longer term lease versus staying on month-to-month.  Most of the time the leases will be under market, which could impact your ability to get a higher price.  Some investors prefer to place their own tenants.  Some owner-occupier buyers could still purchase the unit if the tenant were on monthly terms versus a longer lease.  Instead of offering the tenant the longer lease, why not try to give them the opportunity to buy it first?  Otherwise, I'd either give them notice to vacate or keep them on month-to-month.  

@Samuel Toma Condo prices took off in November and December, so you're already ahead.

@Samuel Toma. Did you buy this unit recently?  If so, it sounds like you got a great deal.