Why Rental Investors Should Care About Small Market Shifts
The recent 0.2% uptick in existing home sales may not make headlines, but it signals something important for anyone considering a mortgage for rental property. In a tight inventory market, even minor improvements can mean major opportunity for investors aiming to scale their rental portfolios.
What the Market Just Told Us
According to the National Association of Realtors, U.S. existing home sales rose slightly in May – the first gain after months of decline. That small increase matters if you’re shopping for rental property loans or evaluating market entry timing.
A slight rise in home sales suggests stabilization – the ideal environment to secure a mortgage loan for rental property before broader price increases. Inventory remains tight, keeping competition high and rent demand strong.
Median existing-home prices hit $419,300 in May – up 5.8% YoY – and rents are following suit. That’s great news for buyers using rental loans to build cash-flowing portfolios.
With inventory at just 1.28 million homes, there’s more pressure on the rental market. Investors with financing in place – including those preapproved through rental property lenders – are in a strong position to buy and lease quickly.
The South Offers Major Rental Upside
Home sales in the South rose 1.6% last month, outperforming all other regions. This area remains a hotspot for both owner-occupants and renters – and an excellent place to use a mortgage for rental property to start or grow your investments.
Don’t Have Cash? Smart Financing Wins Deals
Cash buyers are active, but many investors are winning bids using rental property loans. The key is having a strong lending partner that knows the rental space.
Use LenderSearch.com to find investor-focused lenders who offer:
- DSCR loans
- Bank statement options
- Mortgages for rental properties in all 50 states
Find rental property lenders now
Higher Rates Don’t Kill Rental Deals
Even with elevated rates, strong rents and flexible loan options like DSCR loans help offset borrowing costs. If the numbers work, the deal works – especially with the right mortgage loan for rental property.
Summary: It’s Time to Act
The market is shifting. If you’ve been waiting to pull the trigger on your next deal, now’s your chance.
- Prices are rising
- Inventory is tight
- Rent demand is strong
- Rental property lenders are still eager to fund good deals
Find your next mortgage for rental property today and build long-term wealth while the market is on your side.
