Specialist · Carolina Beach, NC · Member since 2016 · 390 posts · 496 votes
So, I overheard a guy at lunch today telling his friend he was going to sell his primary home here in Las Vegas because "the market is too over heated. I'm going to sell, take my gains and rent for awhile until the market cools off."
If I heard him correctly (I was eaves dropping after all) he said the price to rent ratio in his neighborhood had hit ".5%" and it was "time to sell". I assume that means he could rent a place in his neighborhood for .5% of what it would cost to buy. (I.e. a $200,000 house would rent for $1,000 a month).
Seemed extreme to me but got me thinking if there are any RE investors out there who have any similar "time to sell" market indicators; whether it be for an investment property or a primary residence.
I posted a link to an article about our local economy yesterday. It shows some good signs for stable, sustainable growth in my opinion. Personally Im not seeing anything telling me the market will cool down (or that we're in a bubble, soon to pop) soon but would love to hear what other have to say. Here's the link:
@Brian Ichikawa (just as a heads up you can tag someone by using the "@" symbol and then their name afterward to let them know you're addressing them, not sure if you've seen that yet)
My follow up question about your dad is would he sell them once the market prices got to where the rents would be 10%? Or if rents actually declined then he'd sell? I feel like rents falling would be an indicator of market prices going down as well which to me would be a bad time to sell...
As a local wholesaler who speaks to these sellers everyday, it is a hot market right now and the sellers know it. The funny thing is that the only thing that is making the market hot is that the sellers are more motivated to sell. Nothing changed. My spreads and calculations are still the same. Sellers just actually want to sell now. I guess it's the actual heat out here in Vegas that is making these sellers want to get rid of their properties.
When the rents fell. Here in Vegas we have certain areas where there are a lot of Investor owned properties. It became so competitive to get renters, our property manager was asking us to drop the rent and offer incentives.
The market was actually improving, but the rents declining. Hasn't happened a lot recently. We have been able to increase our rents slightly. It was more common a year and half ago.
I posted a link to an article about our local economy yesterday. It shows some good signs for stable, sustainable growth in my opinion. Personally Im not seeing anything telling me the market will cool down (or that we're in a bubble, soon to pop) soon but would love to hear what other have to say. Here's the link: