Are Rental and Sales Prices Contracting Or Will Demand Keep Prices Skyrocketing?
The rental and sales market is changing once again. Is this due because of the level of demand or is the time of year playing a key role?
By: Atlas Group LC
LAS VEGAS - Nov. 9, 2021 - PRLog -- As previously discussed by Atlas Group LC and other leading professionals in the Las Vegas market, it seems apparent that the housing market for both rentals and sales are starting to level off as we head into the 2021 holidays.
Richard Raines, the broker of the Atlas Group LC was featured as a real estate and property management expert on Channel 13 Action News in Las Vegas on Nov 3, 2021. The broadcast focused on the current state of rental and sales market. Both sales and rental prices have seen the greatest increases over the past year, going up as much as 20% for some properties. Many would be buyers are being priced out of the sales market as median prices in the greater Las Vegas valley reach $425,000 dollars.
As housing prices increase so do rental prices. Potential buyers that are forced out of the sales market find themselves competing for rentals which drive up rental prices even more. Rental owners are increasing their rents as demand increases. Many current tenants are forced to vacate to find more affordable housing. Since this scenario is playing out at all price points, there is no lack of demand.
This is happening all over the country according to Raines. People in more expensive areas of the country are moving to Las Vegas where they see prices at every level as a bargain. It's the people who have lived here most of their lives that are feeling the price pinch.
According to Freddie Mac and Fannie Mae sale prices are expected to rise over the next 5 years but at a more reasonable rate of 5% annually. Much of the previous and current pent-up demand was caused by the COVID-19 restrictions. Many rental owners that lost thousands of dollars in rent due to the restrictions, are now putting their properties up for sale.
The consensus of the French Workbench podcast panel was that as people moved out of cities in order to obtain a friendlier living environment, that both new home as well as existing home prices will remain high if not go higher from increased demand. Over the last few weeks we have seen a reinstatement of incentives by builders which could be another indication of the sales market slowing down a little.
According to Richard Raines of the Atlas Group LC, a residential property management firm with over 25 years in the Las Vegas market, "Rentals are still moving fast in the median to lower price points, but have showed slowing at higher prices. This last summer, many times we would get a hundred phone calls in a matter of hours regarding a newly listed property. At the moment, that has slowed significantly.
Rental and sale statistics received through the Multiple Listing Service show that both the sales market is contracting slightly while the number of available rentals is expanding when comparing week end to week end statistics. In a normal rental market, we see demand slowing now through the end of the year. Then about February 1st it picks up again.
Be sure and subscribe to the French Workbench podcast cohosted by Richard Raines every Saturday at 10 am Pacific Time for the most relevant housing updates. If you would like touch base with a property manager, call the Atlas Group LC at 702-916-2222. We would be happy to discuss any challenges you may be facing and there is never any obligation
Richard C. Raines