Las Vegas Sun

May 27, 2015

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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

‘Vegas Modern’ developer talks architectural innovation, green building technology

Sun, May 24, 2015

Tyler Jones is founder and owner of Blue Heron, which developed Sky Terrace, a desert-themed luxury community of custom homes in Henderson. The homes are packed with electronics and offer ...

Nevada foreclosure rate takes big jump in April

Thu, May 21, 2015

April foreclosure activity in Nevada rose by nearly 40 percent from a year ago, giving it the nation’s second-highest residential foreclosure rate. Real estate analytics company RealtyTrac reported Wednesday night ...

Gavel hangs over housing market

Mon, May 18, 2015

The Las Vegas housing market is being hobbled by legal wrangling and disagreements over homeowners association foreclosure proceedings that have resulted in thousands of homes sitting empty and untouchable in ...

Summerlin land prices keep rising, but homebuilders aren’t shying away

Fri, May 15, 2015

Homebuilder Kent Lay knows all too well that Summerlin land isn’t cheap. His company, Woodside Homes, is paying double what it did a few years ago. It’s not alone. Land ...

Henderson man has good reason for building igloo-shaped house

Fri, May 8, 2015

In east Henderson, in a quiet neighborhood with custom homes, equestrian properties and wandering coyotes, Aeron Tozier is building a house that, at first glance, looks like a big, steel ...

Sales and prices of used homes rise in April in Las Vegas

Thu, May 7, 2015

The median sales price of single-family homes in Southern Nevada in April was $212,568, up 3.7 percent from March and 10.7 percent from a year ago, according to the Greater ...

Flipping homes remains profitable — especially outside Nevada

Wed, May 6, 2015

House-flipping is still a popular pastime in Nevada, but investors can make a lot more money doing it elsewhere, a new report says. Flipping accounted for 6.4 percent of home ...

Face-lifts at two major malls on the Strip to bring new restaurant, retail offerings

Fri, May 1, 2015

In a bid for diners, two shopping malls in Las Vegas’ resort corridor are getting mini face-lifts to make room for more restaurants. The projects, at Fashion Show mall and ...

Should MGM branch out into real estate?

Mon, Apr 27, 2015

Investment firm Land and Buildings is pushing MGM Resorts to adopt a proposal the investors say could skyrocket shares as high as ...

Report: 55 percent of Nevada homes in foreclosure also heavily underwater

Wed, Apr 22, 2015

Being underwater on your mortgage doesn’t necessarily mean you’ll lose your house to lenders. But more often than not, it does in Nevada, a new report shows ...

Photos: Lake Las Vegas home has 7 bathrooms, unlimited views

Fri, Apr 17, 2015

In a faraway land known as Lake Las Vegas sits 16 Via Potenza Court, a three bedroom, seven-bathroom mansion. This 5,515-square-foot Tuscan-style home, designed with the central Italian region in ...

Retail rebound: Sahara Pavilion becomes latest major mall to change hands

Thu, Apr 16, 2015

Sahara Pavilion, at the northeast corner of Sahara Avenue and Decatur Boulevard, was once a hot spot for Las Vegas retail. Now, it's part of a trend in which Las ...

First quarter shows mixed signals in Nevada’s continuing foreclosure woes

Wed, Apr 15, 2015

One in every 209 homes statewide received a foreclosure-related filing in the three months ending March 31, the third-highest rate in the nation behind ...

Private university buys Nevada Cancer Institute building for its med school

Mon, Apr 13, 2015

The former Nevada Cancer Institute building will remain a part of the region's medical community. Roseman University of Health Sciences announced Monday that ...

Developments in southwest valley rise after years of delays and defaults

Mon, Apr 13, 2015

As the economy improves, few places are getting as much action. Developers are building or planning to construct apartment complexes, industrial properties, big-box retail 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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