Las Vegas Sun

January 26, 2015

Currently: 52° — Complete forecast | Log in

Topic:

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

Crumbling, off-Strip tower in Las Vegas scheduled for daytime implosion

Fri, Jan 23, 2015

Stardust. Desert Inn. New Frontier. Dunes. All famed Las Vegas casinos, all imploded in spectacular fashion. Add a property to this list of dynamite and destruction: the Gramercy ...

For $140 million, another portion of mall on Las Vegas Strip changes hands

Thu, Jan 15, 2015

Less than a year after buying most of Showcase Mall, a group of New Yorkers has apparently bought another chunk of the Strip retail hub for big dollars. Jordache jeans ...

Kamran Zand's high-powered, high-pressure life selling luxury real estate

Thu, Jan 15, 2015

Real estate broker Kamran Zand is in the business of selling an image. And business is good.

Nevada sees foreclosure rate slide in 2014

Wed, Jan 14, 2015

Foreclosures slowed drastically in Nevada last year, but the state remained one of the hardest hit in the country as banks eased off ...

Las Vegas bank-owned home prices lagging behind other resales

Tue, Jan 13, 2015

After the Las Vegas housing market hit bottom in early 2012, bargain-hunting investors bought houses in bulk and pushed up prices valleywide — even for homes that had been trashed ...

New CEO at Las Vegas real estate trade group

Mon, Jan 12, 2015

A big trade group for Las Vegas real estate agents has a new top boss. The Greater Las Vegas Association of Realtors said today that it hired ...

The economics (and nostalgia) of dead malls

Sun, Jan 11, 2015

Since 2010, more than two dozen enclosed shopping malls have been closed, and an additional 60 are on the brink, according to …

Las Vegas home prices, sales rise despite sluggish time of year

Thu, Jan 8, 2015

Las Vegas used-home prices inched up last month to cap another year of growth, albeit a much slower rate than previous years. The median sales price of a single-family house ...

John Tippins, residential reactivator

Thu, Jan 8, 2015

His focus on Downtown is not going unnoticed—or unappreciated.

After a busy 2014, what’s in store for Las Vegas real estate?

Wed, Jan 7, 2015

In 2014, investors built retail, apartment and office projects in the suburbs, the housing market stayed volatile and new projects were proposed and took shape along the Strip. After a ...

In 2014, the Word of the Year in VegasVille was …

Fri, Dec 26, 2014

"Activation" was mentioned at every groundbreaking and rendering unveiling in the city in 2014. It was used most frequently to reference unused parcels on the Strip and downtown that became ...

Las Vegas’ underwater mortgage rate improving but still worst in nation

Tue, Dec 16, 2014

Some 27.8 percent of local homeowners with mortgages were upside-down — meaning their debt outweighs their home’s value — in the third quarter. That’s down from 39.6 percent a year ...

Q+A: Las Vegas contractor talks city’s colorful past, surviving recession, stepping aside

Tue, Dec 16, 2014

Frank Martin, the 67-year-old co-founder of Martin-Harris Construction, helped build Las Vegas, turning dirt lots into schools, office buildings and casinos. His company was hit hard by the recession, but ...

Delayed 1,700-acre project to get first homes

Thu, Dec 11, 2014

The Olympia Companies has sold 80 acres at Skye Canyon — a fraction of the 1,700-acre project site — to Pulte Homes and Woodside Homes, executives said today.

For Las Vegas renters, pricey resort-like options increasing

Thu, Dec 11, 2014

Despite the still-sluggish economy in the Las Vegas Valley, investors are building a burst of higher-end rental complexes with larger units, lots of amenities and much higher prices. It’s unclear ...

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 ...

Email Newsletters

To view/update your newsletter subscriptions and interests, please visit our Preference Center.

Most Popular

Calendar

The Sun

Locally owned and independent for more than 50 years.