Based on the real estate experts, at the time of the real estate boom, some cities like Miami, Phoenix and Las Vegas experienced home prices go up to a level that was too high. But now it’s the other way around. Home sellers in those most affected cities have been obliged to lower prices to be able to compete in the foreclosures market. Based on the reports, real estate prices in Las Vegas have gone down to 19.3 percent in the last year and 39.7 percent in the last five years. The other part is while you have discounts in condos that are up in the market, you also have a much larger rental market with people who lost their home, which is causing some competition among renters. There is a much higher price for rental than expected. Add it up with competition from foreclosures that made pricing pressure on sellers and the cost of ownership would be a pretty reasonable price.
Based on the real estate experts, Las Vegas is in the 10th spot among the largest U.S. cities by population with regards to price-to-rent ratio in contrast to average list prices with average rents for two-bedroom units, condos and townhomes that are on the data. The records show an average list price of $128,815 for Las Vegas, in contrast with an average rent of $983 per month, or a 10.92 price-to-rent ratio. Minneapolis was recorded to be on the first spot with a 7.54 ratio and New York was last with a 32.59 ratio. It is much better financially to have a house than to rent it out in Las Vegas, this is sign that a return to housing fundamentals which affected population increase in Vegas for many years.
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Do you know if I can find an up-to-date list with the price-to-rent ratio of the major american cities somewhere on the internet?
The newest I found was this one: http://www.nytimes.com/interactive/2010/04/20/business/20100420-rent-ratios-table.html
In some cases the numbers on that list differ significantly from yours.
Hi Marco,
What does this figure actually tell us ?
That houses are a good invesment in Las Vegas again ?
It’s bad news for the average person, but great for investors who are taking advantage of all the great deals and then turning around and becoming landlords.
This are really sad news, I expect things to go better next year. It really depends on the destination, but if you lose a job in expensive place I think it is much better to move your home where the prices are cheaper. Make you moving checklist get a good job and don’t think too much.
Yes Palmdale Homes. The government policy should be able to protect all the community. Not only the investors but also the majority people.
Great post
Is it likely a seller will accept an offer 10- 20% lower then the homes market val. in a buyers market?
Great article, thanks for sharing such helpful real estate information! I have also noticed the influx of renters in the Seattle< WA market. Your article is right on the money!
The current real estate market shows the property sale has been increased much in 2010 than 2009 also decreased the rate of the property.I don’t think the market is large due to people lost their homes, its because people moving to another location for their business and job needs.