Housing market trending toward rentals

WILMINGTON — Home prices are on the decline across most of the country, but even with lower costs, some realtors say buyers are hard to come by.

Local realtors say the market is trending toward long term rentals as an option.

Between a slumping economy, rising foreclosure rates and slow-selling homes, local realtors say the market is shifting.

The sub-prime mortgage crisis, bad credit and rising foreclosure create a triple threat for buyers. That’s why the market is now trending toward renting, not owning.

Jane Staton, a Wilmington agent, only deals with rentals. She says business is on the rise.

“There are homes that haven’t sold, individual owners who have possibly moved out of town or purchased other homes and need to sell this home but hasn’t so their trying to defer their mortgage costs by renting it out,” Staton said.

Another reason for additional rentals is that it’s obviously harder for homeowners to sell when buyers can’t get mortgages.

People who have been through foreclosure experience that exact problem and therefore rent homes in the area because they can’t secure mortgages.