Las Vegas Sun

December 21, 2014

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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’ underwater mortgage rate improving but still worst in nation

Tue, Dec 16, 2014

Some 27.8 percent of local homeowners with mortgages were upside-down — meaning their debt outweighs their home’s value — in the third quarter. That’s down from 39.6 percent a year ...

Q+A: Las Vegas contractor talks city’s colorful past, surviving recession, stepping aside

Tue, Dec 16, 2014

Frank Martin, the 67-year-old co-founder of Martin-Harris Construction, helped build Las Vegas, turning dirt lots into schools, office buildings and casinos. His company was hit hard by the recession, but ...

Delayed 1,700-acre project to get first homes

Thu, Dec 11, 2014

The Olympia Companies has sold 80 acres at Skye Canyon — a fraction of the 1,700-acre project site — to Pulte Homes and Woodside Homes, executives said today.

For Las Vegas renters, pricey resort-like options increasing

Thu, Dec 11, 2014

Despite the still-sluggish economy in the Las Vegas Valley, investors are building a burst of higher-end rental complexes with larger units, lots of amenities and much higher prices. It’s unclear ...

Real estate was down, but across the country, it’s reviving — and nowhere more than here

Sun, Dec 7, 2014

New to Las Vegas, the director of the Lied Institute for Real Estate Studies talks about the improvement in the real estate market, the increase in enrollment at UNLV and ...

Real estate blog ranks Henderson fifth safest city in U.S.

Fri, Dec 5, 2014

Using Census data and FBI statistics to survey the country's 100 biggest cities, the blog placed​ Irvine, Calif., at the top of the list, followed by ...

Events facility Venue a potential boost for Fremont East

Thu, Dec 4, 2014

Years after buying the project site, nightlife entrepreneur Victor Perrillo is building an events facility on the cusp of Fremont Street’s rowdy bar scene. Construction is underway at ...

Investors are flipping fewer Nevada homes, report finds

Wed, Nov 19, 2014

Real estate investors aren’t flipping homes in Nevada as often as last year, but they’re still more active than flippers nationally. Flipping slowed nationally to ...

Las Vegas real estate market is a wild ride

Sun, Nov 16, 2014

Housing is a volatile business but seems more extreme in Las Vegas, with its long history of fast-paced construction, out-of-town investors and transient residents.

Buy $38 million Palms penthouse, and they’ll throw in a Lamborghini

Thu, Nov 13, 2014

Phil Maloof’s rooftop penthouse at the Palms is packed with opulence, but after sitting on the market for five months without luring a buyer, his listing agents have thrown in ...

Work progressing on recession-stalled Beltway project

Thu, Nov 6, 2014

The former ManhattanWest, the stylish retail, office and residential complex that sat unfinished for years at Russell Road and the 215 Beltway, is being being completed by WGH Partners, which ...

Henderson latest Southern Nevada city to launch home foreclosure registry

Wed, Nov 5, 2014

In a region still stung by foreclosures, Henderson officials have kicked off the latest effort to track abandoned homes and prevent them from falling into disrepair. Nevada’s second-largest city this ...

Investors’ retreat from Las Vegas housing market triggers sales slowdown

Wed, Oct 29, 2014

When investors flocked to Las Vegas for cheap homes after the economy crashed, they resurrected the housing market with sorely needed ...

First mountainside home lot at Ascaya in Henderson sells — for $925,000

Tue, Oct 28, 2014

Developers of Ascaya, the long-delayed mountain-mansion project in Henderson, have sold their first lot — a 0.46-acre parcel for $925,000. The sale closed Friday, property records show, and sales of ...

Eric Trump talks Atlantic City, ‘Apprentice,’ return of pageants to Las Vegas

Thu, Oct 23, 2014

“What did Las Vegas do that Atlantic City didn’t? You built the best restaurants, you built the best shows, you have Red Rock Canyon, you have an unbelievable airport and ...

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 ...

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