Expensive homes go up for lease

MID-MICHIGAN (WJRT) (WJRT) -- (09/06/06)-- Upper middle class neighborhoods in Genesee County are starting to see some "for lease" or "for rent" signs posted in front yards of homes.

Experts say it's a sign of the times and a stagnant real estate market. Renting out expensive properties is how the property owners are able to pay the bills.

A number of $200,000 homes in the county's more upscale neighborhoods are for lease.

"Because a lot of people would buy the new build with the understanding that their existing home would sell," said realtor Debbie Upleger.

"Those existing homes are not selling (and) those existing homeowners are afraid to buy the new builds because they think their existing home isn't going to sell and they will end up with two payments."

This leaves builders with a lot of unsold new homes on their hands. In Genesee County, a record 7,500 homes are on the market, and it's taking much longer to sell them.

"And because there are so many homes for sale there is just so much competition. If somebody doesn't find a home that they want, they can just go somewhere else and get another one, because there are so many homes on the market," Upleger said.

Recent GM and Delphi cuts are playing a major role. People who are relocating to other areas are burdened with two mortgages for months or even longer.

With bankruptcy or foreclosure looming,  many homeowners lease with the help of real estate companies who conduct credit and background checks on potential lessees.

Sue Okopien is an agent for  Re/Max Town and Country. "It works for both parties. If the homeowner is able to find a good family for their home and a family who needs a home to lease for a year of two, it works out good for both parties."

Experts say they expect the housing market to improve in the coming year or so.

As new home construction slows, the number of homes for sale will fall more in line with demand.

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