Milpitas North San Jose Berryessa Real Estate News

3. Rentals.  Rising rental rates in many markets are making home ownership a more appealing option, especially for those seaking to buy distressed property.  But many households aren't financially ready to buy, either because of credit dings or the continuing overly tight credit restrictions of lenders.  Others are waiting to make sure home prices have bottomed out.  That's why many real estate companies have shifted their business model to include rental and property management.

Bill Bloomberg, broker-owner of Distinctive Rental Homes in Eden Prairie, minn., opened his business in 2011 with high-end rentals as his central focus, providing assistance to both renters and owners who choose to rent rather than sell their property.

And when owners opt to rent their property rather than sell it, they may be providing a unique opportunity, helping renters get one foot into a neighborhood that's currently beyond their buyer power, says Gina Chirico, sales associate with Lattimer Realty in Fairfield, NJ.

"As long as wages go down, traditional homes sales will suffer," Bloomberg says.  "People say I'm pessimistic, but understanding how the economy works has helped me make the adjustments I needed to make it in my business."  Another plus, he says: Rentals are less stressful than sales.