Fast bucks proving elusive in real estate

For property owners, there is bad news and goodnews. The percentage of vacancies rose to 6.1% in the first quarter, a two year high, but the average monthly rent nationwide rose to $991 — a record, said Sam Chandan, chief economists for Reis Inc. in New York. But, sustaining the high rental prices may be problematical. That’s because the market for rentals is not expected to pick up in 2007, Mr. Chandan told Bloomberg. New York had the fewest vacant units, according to Reis data. And, outlook for the rental market will likely remain difficult. One factor, not to be over looked, is that the quantity of houses available for sale nationwide (2.8%) is greater than at any time since the Census Department began collecting housing data in 1956. A record 3.45 million properties were for sale last year, according to the National Association of Realtors in Chicago. Investors that sought to acquire property, particularly condominiums, and sell them for a quick profit were unable to find buyers. As a result, they are renting the properties, causing pressure on rents and vacancies to increase, said Mr. Chandan.