Las Vegas Sun

October 23, 2014

Currently: 67° — 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

Eric Trump: ‘We’ve had so much good luck. We’re buying everything around the world’

Wed, Oct 22, 2014

I’ve known Eric Trump since he was a youngster, and he’s grown up as a duplicate of The Donald following in his father’s famous footsteps. They sound alike and talk ...

Seller of Atomic Liquors building buys bank-owned office building

Tue, Oct 21, 2014

A few months after selling the Atomic Liquors building to Downtown Project, the bar’s bosses have plunked down a few million for an office building in ...

Owner of downtown’s Ogden bucks trend with condo sales blitz

Thu, Oct 16, 2014

When investors bought the Ogden and four other Las Vegas residential complexes last year for big dollars, they were among many laying bets on the valley’s apartment market. Now they’re ...

Las Vegas home sales dip, but prices inch upward

Wed, Oct 8, 2014

Despite a slowdown in sales, Las Vegas used-home prices inched past the $200,000 mark last month. The median price of single-family homes sold in September was ...

Staging a home: Art and science

Sun, Oct 5, 2014

Once foundations are poured and tiles are laid, home developers spend big bucks to decorate model homes to make them cozy and inviting.

Back in business: Henderson’s Inspirada eager for a comeback

Thu, Oct 2, 2014

On the outskirts of southern Henderson, near large swaths of open desert and a small airport buzzing with private planes, the Inspirada community has been a prime example of ...

Court’s HOA foreclosure ruling ‘a win for Nevada,’ Las Vegas investor says

Wed, Oct 1, 2014

The recent Nevada Supreme Court decision that allows homeowners associations to trump mortgage lenders in foreclosing on homes had plenty of critics, but they have it ...

Report: Rising prices a drag on new-home sales

Wed, Sep 24, 2014

Las Vegas homebuilders are stuck in the doldrums as buyers continue to shy away from hefty price tags, a new report shows. Local builders sold 530 new homes in August, ...

Long-planned Henderson health care complex poised to break ground

Wed, Sep 24, 2014

Developers of a colossal Henderson health care project, years behind schedule, say they’re making progress on their plans and getting ready to build. Invitations have gone out to political leaders ...

State high court ruling favors HOAs over banks on home seizures

Thu, Sep 18, 2014

Nevada’s highest court has upheld a law that lets homeowners associations foreclose on houses ahead of mortgage lenders, even if HOAs are owed a fraction of what ...

Allegiant CEO buys Las Vegas Boulevard wedding chapel

Wed, Sep 17, 2014

Allegiant Air boss Maurice “Maury” Gallagher, who’s made a fortune selling cheap plane tickets and a bevy of add-on fees, has entered a new, albeit still low-priced, line of business: ...

Why once-troubled reverse mortgages are poised for a rebound

Mon, Sep 15, 2014

Advertised as a path to an affordable retirement, federally insured reverse mortgages are showing signs of a comeback, drawing the scrutiny of regulators seeking to ...

More parking, more stores coming to Premium Outlets-North

Wed, Sep 10, 2014

Las Vegas Premium Outlets-North is expanding again. Management of the mall, which is on Grand Central Parkway near the Spaghetti Bowl, has expanded a parking garage with 780 more spots ...

‘Only a matter of time’: Las Vegas home prices flatten out

Tue, Sep 9, 2014

Las Vegas housing prices were flat last month as the market slows down from its meteoric recovery from the recession. The median sales price of single-family homes in August was ...

Half-price sale: Vacant land on north Strip — $16M an acre

Fri, Sep 5, 2014

At the peak of the bubble, development firm Triple Five plunked down $180 million for property on the north Strip with plans to build a resort with an observation wheel. ...

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.