Las Vegas Sun

July 25, 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

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 ...

‘Elvis House’ has a storied past but a sullied present

Sun, Mar 2, 2014

The house at 2520 Castlesands Way is as unique as they come in Las Vegas. Much of its sordid past is all but impossible to verify, passed on by a ...

Return of the shopper

Sun, Mar 2, 2014

Prices are low, so retail centers are being snatched up left and right. But are we falling into the same trap that sent us into the Great Recession in the ...

Fewer Las Vegans are underwater, but rate still leads country

Thu, Feb 27, 2014

About 35 percent of valley homeowners with mortgages were upside down last quarter, which is dramatically lower than the peak of 71 percent in 2012. For the drop, we have ...

Las Vegas home prices rise; yearly gain is second-highest in the U.S.

Wed, Feb 19, 2014

The median value of Las Vegas-area homes rose to $168,800 in January, and values are expected to continue climbing locally this year but at a slower rate than in 2013.

Nevada remains a top foreclosure state as new filings climb

Wed, Feb 12, 2014

Banks seized a rising number of homes from delinquent Nevada borrowers last month, keeping the state’s foreclosure rate one of the worst in the country.

Too hip to flip? Not for buyers in Las Vegas, report says

Mon, Feb 10, 2014

Southern Nevada home prices tapering off after surge

Mon, Feb 10, 2014

Las Vegas home prices were flat in January, a not-unexpected slow start to the year. The median sales price of previously owned single-family homes in Southern Nevada last month was ...

Barclaycard US to begin training classes for workers at new Henderson call center

Mon, Feb 3, 2014

Last year when Zappos moved into downtown Las Vegas, it left a gaping hole in the Henderson office space from which it moved. But it didn’t take long for the ...

Home price surge may herald the return of house flipping

Wed, Jan 29, 2014

Home flipping, a hallmark of Las Vegas’ housing bubble, became more popular and a lot more lucrative last year amid surging prices.

Luxury home boom to change the face of London

Tue, Jan 28, 2014

Dozens of buildings of 20 stories or more are under construction along the River Thames just upstream from Big Ben and St. Paul's Cathedral. The development surge has spawned concern ...

Sign of recovery: Traditional home sales now dominate foreclosures and short sales

Tue, Jan 21, 2014

Banks' long-held iron grip on Las Vegas’ wobbly housing market is loosening, as 70 percent of used-home sales now are traditional deals between private buyers and sellers.


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Foreclosure Forecast
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