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The market’s fallout
As housing numbers continue to slide, we hope this whole mess doesn’t happen again
Thursday, Feb. 21, 2008 | 2:07 a.m.
January marked a dubious achievement for Las Vegas: The number of homes repossessed topped the number of homes sold.
That is a rare statistic, especially in Nevada, where the housing market rode the economic bubble to incredible heights. Now that the bubble has burst, it is painful watching the fallout.
As reported Tuesday in the Las Vegas Sun by Brian Wargo, the number of foreclosures — 2,177 — was more than double the number of homes sold in December. This is only the latest troubling number in the state housing market.
Nevada has led the nation in the number of foreclosures per household for several months. And RealtyTrac, a company that tracks foreclosures, found that in December the Las Vegas Valley led the nation in the number of foreclosures by ZIP code. The company reported that half of the 50 hardest-hit ZIP codes in the nation were in Clark County.
This is the unfortunate result of the feeding frenzy among investors wanting to make a quick profit in the booming market and lenders’ excessive use of subprime mortgages, which proliferated with lax regulatory oversight.
The silver lining in this mess, if there is one, is that the housing market may come back to reality. Part of the dream for many people moving to Las Vegas was that they could afford to live here, buy a house and have a good quality of life, but hyperinflated housing prices put that dream out of reach for many.
Now, as the market cools, investors are once again eyeing Las Vegas. A recent Entrepreneur.com report says Las Vegas is one of the top places investors should be considering to buy an existing home. If that happens, and lending practices and government oversight don’t improve, the vicious circle will start again.
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"If that happens, and lending practices and government oversight don’t improve, the vicious circle will start again."
Oversight -- is a foreign word when it comes to quick profit turnaround in Vegas; and all the fly-by night loan officers, underwriters, brokers, agents, etc. in the industry will make their monetary killing as long as home buyers remain ignorant to the terms and conditions of a real estate contract. Then again, there maybe a handful -- this time around-- of skilled and thoughtful lawyers waiting in the wings to help the buyer/investor through his/her next purchasing venture.
I cannot imagine anyone considering Las Vegas for a place to purchase a house, let alone an investment property. People never learn. I left there seven months ago. What a horrible god forsaken place. Wait until the recession/depression hits Las Vegas. All of the new casinos and hotels and restaurants will look like ghost towns. If people cannot afford food, gas, and their house payment, they will not travel to Las Vegas to pay the huge costs for food and lodging to get robbed by the one armed bandits. Drive through Las Vegas and the suburbs - mile after mile after mile of poorly constructed houses on small lots. Good Luck, Investors - you will need it.
JohninMontana? What are you talking about? Las Vegas has been know to do very well during recession periods. Gaming companies have also done well during recession periods. I'd be more concerned for yourself in Montana then for us in Vegas.