by CAROL MARTINDALE

HOUSE RENTS are dropping but the properties still aren't moving.

Some realtors told the SUNDAY SUN that even though they were slashing the asking price for some rents by as much as half, the houses were not being snapped up by those hungry for homes.

In fact, they say many prefer to simply hunt around hoping the prices will drop even further so they can get the best value for their money.

James Medford of New Vision Realty said while he had heard of some people "halving their rents", he too had the drastically dropped the asking price of some rentals.

"I have had properties that would have gone for $2 000 to $2 500 a year or so ago and people are now asking $1 500 to $1 800, and these are for three-bedroom apartments or houses," he said.

Medford cited an example where a fully furnished four-bedroom house was first advertised for $2 500 and came down to $1 800 but was still not rented.

He said an upscale property which had a view to the sea that could have easily rented for $2 200 a month was now down to $1 500. Still, he said, they were finding it difficult to get it rented.

"People who are renting properties have had to revise their asking prices. Even though we are revising the rates downwards, some people are holding back to see what will happen," he said.

Arthur Ramsay of George A. Ramsay & Co. Ltd said some looking for rentals were shopping around for the best deals.

"More people are more cautious about how they spend their money in terms of rent. A person looking to spend $1 000 in rent will look for the best $1 000 they can get out there," he said.

Slow market

Ramsay said some properties on the market for months, and sometimes close to a year.

He said this was especially the case for properties built for the executive rental market.

"Some of these are brand new or only a few years old. Some of them have pools, some have four bedrooms and a study. Most of them were big properties and catering to the executive rental. What has happened as a result of the market trends and rentals slowing down is that a lot of them that used to be rented for $10 000 have now come down to the $7 000 to $8 000 range because no one is in it," he said.

As a result, he said, agents were advising clients to reduce the rent and negotiate instead of keeping the property locked up for long periods.

"You have to be realistic. Do I hold out waiting and hoping for a higher rent or do I just rent it at what I can get for it in this current market?" he added.

He also said that there were too many rentals on the market, which compounded the situation.

Alkins Kirton of A.N. Kirton Incorporated said he was also witnessing the trend where even though the price of properties was down, there was still little movement.

In fact, he said, even though rents had been reduced, some tenants were giving up their rentals and going back home.

"People are giving up their houses and going back to their relatives because they can't afford the rent. This happens especially with single people and those who have lost their jobs.

"Once you get job losses, business layoffs, put employees on short weeks or reduce salaries, all this will have an effect on the rental market," he said.

Another realtor, who did not want to be named, said the properties were not moving as quickly even with a revision of rates and some were looking around to see if prices would drop in the near future.

* carolmartindale@ nationnews.com