The Rental Market Showdown
Real Estate Southern California
By Nellie Day
...Now that 2009 is more than half over and the housing market is showing some signs of stabilization, the idea of seeing a recovery within a year has become a very real possibility. Unfortunately, while relief may be in sight, it's not here yet. This leaves multifamily owners and operators in a pickle as they try to figure out how much longer they can hold on before the market turns around and when, exactly, the time will be right to snatch up deals at rock-bottom prices. On top of timing the market correctly, multifamily players must also contend with a good deal of fear, which they share with their clients and tenants as the Southern California market navigates uncertain waters...
...According to a national second quarter study by RealFacts, multifamily tenants are resisting the lure of expensive, high-end units...
...One of the primary reasons for this is the fear of losing one's job, according to Delores Conway, director of the Casden Real Estate Economics Forecast and the USC Lusk Center. She notes that until unemployment shows some signs of dropping the market is not likely to recover.
"The wildcard is unemployment because it's still rising," Conway says. "If unemployment starts to stabilize and come down, it would help."...