Rental Over-Supply, reverses trend in November vs. December (17% + above average supply)
The Rental and Sales market for 2015 was interesting to say the least. We have seen the supply of rentals go from a high of 20% above average supply to parity by the end of the year. This has been a marvelous reversal of a trend we began to worry about mid-year.
Average Rent Charged Slightly Higher in 2015 (Just ½% higher in 2015)
Despite the average rent charged ending the year above 2014, it was a very bumpy ride. The first half started to move above 2014 but as the over-supply started to affect the market we saw a decline in average rent charged in June which severely effected the days on market as seen on the charts. November was our worst month but it did bounce back in December. 2015 was a break-even year coming in at $2219.50 which is just $7.17 more than last year (See chart on page 2 & 3)
Average Day On Market (12% higher than 2014)
The average days on market tells the story best. Due to the excessive supply “the time a listing was on the market” was extended on average 10% over the year. There were several months where the days on market were in excess of 25% more days than the previous year. (See Chart on page 6)
Homes Sold 2015 (9% higher than 2014)
The over supply does not tell the whole story about the softer rental market in 2015. Over the past 5 years, 2015 will be a record year with a total of 14,363 units sold. This represents an increase of 9% over 2014, 1 ¾% increase over 2013, 6.8% increase over 2012, and a 16% increase over 2011. We do feel the sales are part of the overall picture and some prospective tenants decided to purchase rather than continuing to rent. This may be a symptom of rising rents over the past 15 years. As rents begin to reach a point in which a consumer can purchase for less than rent we will potentially see a decline in rents charged. Despite the rising rents we do feel this will not affect 2016.