Las Vegas Sun

August 22, 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: Las Vegas’ industrial space a turnoff for companies eyeing move here

Wed, Apr 16, 2014

The Las Vegas Global Economic Alliance has released a report saying dozens of companies that considered moving here picked other cities largely because of a dearth of big, available industrial ...

Lenders are repossessing fewer Nevada homes as foreclosures dip

Wed, Apr 9, 2014

Nevada’s foreclosure rate was sixth highest in the country last month, after Florida, Maryland, Indiana, Ohio and Illinois. One in every 701 housing units statewide received ...

Inventory of Las Vegas homes climbs along with prices

Tue, Apr 8, 2014

In Las Vegas, home prices have been climbing at one of the fastest rates in the country as investors, looking to capitalize on the housing crash, bought cheap homes in ...

Mysterious group buys underground doomsday house in Las Vegas

Fri, Apr 4, 2014

The famed underground house near Flamingo Road was built as a spacious Cold War bunker, to keep people alive and entertained in case the Soviets wiped out Las Vegas with ...

Court hearing on fraud-related charges for father of quints delayed until June 20

Wed, Apr 2, 2014

Deon Derrico, the father of a set of Las Vegas quintuplets, will wait to have his day in court on real-estate fraud charges. This morning in North Las Vegas Justice ...

Father of Las Vegas quints faces real estate fraud charges

Tue, Apr 1, 2014

Until now, Deon Derrico has been in the news as the father of quintuplets. But now he's got more than just changing diapers on his mind. He's scheduled to be ...

How to do Vegas like a Trump

Tue, Mar 25, 2014

Developer plans to rehabilitate ‘eyesore’ development, just one of many investors doing so in the valley

Tue, Mar 25, 2014

For vandals on the prowl, Centennial Hills Center was just too tempting. They smashed windows, sprayed graffiti and ripped out the copper from the abandoned medical-office project. As if to ...

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Wed, Mar 19, 2014

New owner envisions Boulevard mall, now ‘all beat up,’ as retail/entertainment hub

Wed, Mar 19, 2014

The new owner of Boulevard mall has big plans for the redevelopment of the aging retail property. He is negotiating with retail tenants and has plans for...

Mixed messages from local economy

Sun, Mar 16, 2014

Property values are rising at some of the fastest rates nationally, with used-home prices jumping 27 percent in the past year and new-home prices soaring 36 percent. Many listings receive ...

Nevada’s foreclosure rate, while improving, is third-highest in U.S.

Wed, Mar 12, 2014

One in every 633 Nevada housing units received a foreclosure-related filing in February, down 16 percent from January and 49 percent from February 2013. Silver State homeowners weren’t the only ...

After a brief break, Las Vegas home prices headed up again

Tue, Mar 11, 2014

The median sales price of previously owned single-family homes in Southern Nevada last month was $190,000, an increase of...

Wall Street has found its latest dangerous financial product, activists warn

Tue, Mar 4, 2014

Construction restarts on mixed-use Gramercy project

Mon, Mar 3, 2014

The new owners of a once-mothballed Las Vegas real estate project have resumed construction on what they deem an “iconic” urban-style enclave. The first tenants are expected to move into ...


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