Las Vegas Sun

November 23, 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

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. ...

LVCVA’s sights set on $19M land buy for planned business district

Thu, Sep 4, 2014

Las Vegas’ tourism bureau is continuing its real estate buying spree for its planned multibillion-dollar business district. The Las Vegas Convention and Visitors Authority’s ...

Foreclosure scam leads to 35-year prison sentence

Wed, Sep 3, 2014

One of two brothers convicted of leading a nationwide foreclosure scam was sentenced Wednesday to 35 years in federal prison for stealing titles to more than ...

Developer fashions plan for Las Vegas expo center off I-15 near Strip

Tue, Sep 2, 2014

Developer Jack Kashani, who helped launch the World Market Center furniture-expo hall, has his sights on another massive showcase center for Las Vegas, even though his first one was marred ...

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 ...

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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