I have noticed a trend that affordable Las Vegas rentals are disappearing from the rental listings. I decided to delve a little deeper.
- Average Rent Prices have gone up from $1295 (Jan 2007) to $1453 (Mar 2007)
- Median Rent Prices have stayed stable at approx $1200 since July 2006
- There has been decent penetration in the rental market under $1300/month in February/March 2007
These are only listings in the GLVAR MLS but this is a trend that shouldn't be looked at lightly. This is more excellent news for the resale market that needs help.
Several possible things can happen here:
- Investors may take their homes off of the resale market and rent them out since their ROI has increased
- Long term investor buying speculation will hit the resale market
- Renters will turn into buyers
Renee... I think you hit two nails on the head. Renters could become buyers because of this and in regards to investors... either more buying as an investment and or some taking their homes off the market. I know from dealing with a few investors last year, because prices were higher and rentals were lower... that it didn't make sense to buy. Good observation.