USA: Real House Prices and Price-to-Rent

Real prices are back to 1999/2000 levels, and the price-to-rent ratio is also back to 2000 levels in real terms (adjusted for inflation using CPI less Shelter). On a price-to-rent basis, the Composite 20 index is back to October 2000 levels, and the CoreLogic index is back to March 2000. In recent months, rents have been increasing; lowering the price-to-rent ratio.

Las Vegas: Best place to buy a home and rent it out

The housing market in Las Vegas may continue to struggle, but for investors, the city is the best place to buy a home and rent it out, a new report revealed on Monday. HomeVestors of America and Local Market Monitor released its list of best markets to invest in rental property, and Las Vegas came out on top… That means investors can buy homes at low prices and have a sizable pool of renters from which to choose… The return could be short-term (the cash flow attained by renting out the property), long-term (the appreciation of the property over time) or both, he said. The risks include future potential home-price drops in the market.

Rents Rise, Vacancies Go Down

Vacancy rates are falling fast (the excess supply is being absorbed). The falling vacancy rate is pushing push up effective rents. Note: The excess housing supply includes both apartments, condominiums, and single family homes. A record low number of multi-family units will be completed this year (2011). Only 8,700 apartments came on the market in Q1 (in the Reis survey area).

Wall Street Journal: Why It’s Time To Buy Homes

Rising home prices made renting cheaper than buying in many parts of the country. But that dynamic has begun to change: Housing affordability, as measured by the ratio of median home prices to median household incomes, has fallen below pre-housing bubble levels in just over two-thirds of the country, according to an analysis of more than 380 metro areas by Moody’s Analytics.

Renting is still cheaper than buying in most markets, but rising rents and falling house prices mean that, in some areas, this won’t be the case for long. Buying a home is already cheaper than renting in Chicago, Cleveland, Detroit and Orlando, Fla., according to Moody’s Analytics. In other markets, including Dallas, Las Vegas and Sacramento, Cailf., the equation is likely to soon turn in favor of homeownership if current trends persist, the firm says.