Las Vegas Sun

July 29, 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

Is now the right time to buy, sell or rent?

Sun, May 25, 2014

Las Vegas' housing market has been on a stomach-turning roller coaster ride for a decade. Home prices soared to absurd heights during the bubble, crashed hard and fast during the ...

What about apartments in the valley?

Sun, May 25, 2014

With its sprawling subdivisions of cookie-cutter stucco homes, Las Vegas may not seem like a big apartment market.

Home prices through the years

Sun, May 25, 2014

When people talk about Las Vegas housing prices, they usually marvel at how crazy things got during the bubble, how terrible they were ...

Homebuilder American West is top buyer in auction of southern valley land

Thu, May 22, 2014

Federal lands officials sold 87.5 acres of southern Las Vegas Valley property today at auction for $18 million. Homebuilder Larry Canarelli’s American West Development bought ...

Los Angeles Clippers assistant coach Tyronn Lue sells Vegas oasis

Thu, May 22, 2014

http://www.latimes.com/business/realestate/hot-property/la-fi-hotprop-tyronn-lue-20140521-story.html

BLM set to auction 120 acres in southern LV Valley

Tue, May 20, 2014

U.S. officials hope to fetch at least $19 million by selling 120 acres of southern Las Vegas Valley land. The Bureau of Land Management plans to hold an auction at ...

Number of underwater homeowners in Las Vegas continues to subside

Mon, May 19, 2014

Las Vegas’ underwater housing crisis keeps abating, even as the valley remains ground zero for upside-down borrowers. At its peak two years ago, 71 percent of Las Vegas-area borrowers were ...

Drones flying into wider use across the Las Vegas Valley and beyond

Tue, May 13, 2014

In the past two years, drones have gone from the talk of CES International to the streets of Las Vegas. They’ve been spotted above soccer fields and dayclub parties, at ...

Rising rent leads some seniors back to college-style living

Sun, May 11, 2014

Gerry Venable knew it wasn't his turn to restock the coffee. He'd just bought those two big containers of Folgers. But his roommate reminded him that the bag of Starbucks ...

Inside the lavish Las Vegas mansion that Michael Jackson nearly called home

Fri, May 9, 2014

This is the lavish $17 million estate that almost became the King of Pop's last home. The jaw-dropping Primm Compound in Las Vegas caught the eye of Michael Jackson and ...

Now more than ever, cash is king in real estate

Thu, May 8, 2014

One in three buyers of U.S. homes is paying cash, a record high number, according to data made available to McClatchy. The trend is being driven by retiring ...

Slight dip in Las Vegas home prices as investors back off

Thu, May 8, 2014

For just the third time in more than two years, Las Vegas home prices have slipped a little. The median sales price of previously owned single-family homes in Southern Nevada ...

Lobster Me opens at Venetian; Martinez Taco Bar spices up Aliante area

Mon, May 5, 2014

A shop for lobster lovers cracked open at the Venetian. Meanwhile, Binion’s doubled down on cowgirl-themed section and a new taco bar debuted in North Las Vegas ...

House flipping becoming less prevalent in Las Vegas

Thu, May 1, 2014

Flipping, the get-rich-quick tactic that pushed Las Vegas home prices to absurd heights in the boom years, is declining in popularity this year after a boost in 2013. The sales, ...

In Las Vegas home market, buying increasingly beats renting, report finds

Tue, Apr 29, 2014

As any real estate agent is quick to point out, home ownership in Las Vegas becomes cheaper than renting at a faster pace than in most other cities. Just a ...

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