Las Vegas Sun

August 27, 2014

Currently: 96° — Complete forecast | Log in

Topic:

Real Estate in Crisis

Foreclosed and for sale homes line the 9800 block of Fast Elk Street in northwest  Las Vegas.

Photo by Richard Brian / Las Vegas Sun

Foreclosed and for sale homes line the 9800 block of Fast Elk Street in northwest Las Vegas.

The subprime mortgage crisis is hitting the Las Vegas metro area particularly hard. In fact, Nevada has the highest foreclosure rate in the country and the metro area is consistently one of the top five worse in the nation. The crisis jeopardizes further growth by creating an overflow of available homes, which in turn slows the construction of new homes and invariably effects property values. But at the same time it creates opportunities of more affordable housing for those who have been priced out of the market in recent years.

The crisis entails homeowners losing their houses after they are unable to afford their mortgage payment. It was brought about by lenders and banks giving risky loans, or subprime mortgages, to people with poor credit scores or finances. Low interest rates first attracted such homebuyers. However, as many loans were adjustable rate mortgages (ARMs), higher interest rates down the road made payments nearly impossible, ultimately leading to foreclosure. Furthermore, predatory lenders have been accused of perpetuating the situation by unfairly taking advantage of uninformed or new buyers. There were a large number of investors who bought homes at the height of the market and expected to flip them for a profit, only to see values decline.

All stories

Las Vegas new home sales down

Fri, Aug 22, 2014

Local developers sold 499 new homes last month, down 23 percent from July 2013, according to a report out today from Las Vegas-based Home Builders Research. The median sales price ...

Sales of Henderson mountainside mansion lots underway at Ascaya

Thu, Aug 21, 2014

If you want to live on a Henderson mountainside, hundreds of feet above the valley floor, get ready to pay big and build big. Ascaya is ...

Preferring Southern Nevada’s workforce over Arizona’s, tent maker plants stakes in Henderson

Tue, Aug 19, 2014

They’ve backed off from building a tent-covered tent manufacturing plant, but owners of Creative Tent International are up and running in Henderson after ditching Arizona. The company — which sells ...

Henderson mountain-mansion development Ascaya back in business

Fri, Aug 15, 2014

Hong Kong billionaire Henry Cheng blasted away a Henderson mountaintop during the real estate bubble, with plans for mansions overlooking the valley from street names such as Heavens Edge, Stonecutter ...

Long-abandoned corner of Las Vegas Boulevard and Sahara getting Walgreens

Wed, Aug 13, 2014

It's paving over some colorful history, but a retail plaza with Walgreens is under construction on the north Strip and poised to bring more business to the struggling area. Sorenson ...

Latest purchase of Frontier land is a sober deal

Sun, Aug 10, 2014

On Wynn mocking the 2007 purchase of the Frontier land, how Beauty Bar's new owners fit in (or don't) downtown, and a street name change on the Strip. ...

Rising Las Vegas home prices hit ‘nice milestone’

Fri, Aug 8, 2014

Las Vegas housing prices inched up last month to the highest level in almost six years. The median sales price of previously owned single-family homes in Southern Nevada in July ...

Apartment complex rising at the District in Henderson

Tue, Aug 5, 2014

Years after buying the project site, developers are bringing pricey new housing options to the District at Green Valley Ranch in Henderson. Rents in the Calida Group's 360-unit apartment complex ...

Home owned by Trump holdout auctioned for $530,000

Wed, Jul 30, 2014

She once called Donald Trump "a maggot, a cockroach and a crumb." This week, he remembered her as "an impossible person." The woman who became a folk hero for resisting ...

New-home sales in Las Vegas slide in first half of 2014

Wed, Jul 30, 2014

Sales of new homes in the Las Vegas Valley are down sharply in the first six months of this year compared with the first half of last year. Prices have ...

Banks moving more aggressively against delinquent Las Vegas homeowners, report says

Fri, Jul 25, 2014

After a brief lull, lenders are again ramping up pressure on delinquent Las Vegas homeowners. The number of default notices filed in Clark County has climbed ...

Pardee Homes gives up land in long-stalled Coyote Springs project

Wed, Jul 23, 2014

Pardee Homes, the former lead residential builder at the Coyote Springs master-planned community, relinquished about 2,500 acres of land at the site an hour from ...

Las Vegas developer buys Reno’s blighted Kings Inn

Tue, Jul 15, 2014

The Kings Inn, the long-abandoned hotel-casino that has come to symbolize downtown Reno blight, has been sold to a Las Vegas developer. The sale isn't final until …

Southwest Gas buys its headquarters, bids farewell to rent payments

Thu, Jul 10, 2014

Southwest Gas has been renting the majority of its corporate headquarters in Las Vegas for more than three decades. But with a $16.5 million cash purchase, the utility ...

Investor impact wanes as Las Vegas home prices climb again

Tue, Jul 8, 2014

Las Vegas home prices continue to rise as investors, lured here by the recession’s bargains, keep backing out. The median sales price of previously owned single-family homes ...

Videos

Government Takeover
Government Takeover
The government takes over failing Freddie Mac and Fannie Mae. What does it mean for ...
Sales Up, Prices Down
Sales Up, Prices Down
Home sales reach their highest point in years, but there's still no end in sight ...
Foreclosure Forecast
Foreclosure Forecast
A foreclosure analyst paints a grim forecast for the valley's real estate industry. Plus, the ...
Lake Las Vegas Bankruptcy
Lake Las Vegas Bankruptcy
The struggling housing market is forcing a Henderson master-planned community into bankruptcy. Plus, the federal ...

Email Newsletters

To view/update your newsletter subscriptions and interests, please visit our Preference Center.

Most Popular

Calendar

The Sun

Locally owned and independent for more than 50 years.