Las Vegas Sun

September 3, 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

Steve Wynn buys Guess co-founder’s Beverly Hills estate for $47.9 million

Thu, Sep 3, 2015

There's a $47,851,500 reason that hotel and casino magnate Steve Wynn put his home in Bel-Air on the market recently after only eight months of ownership. That's what he spent ...

Could high-end office complex rise downtown across from Las Vegas City Hall?

Thu, Sep 3, 2015

Across the street from Las Vegas City Hall, near Goodfellas Bail Bonds (“Free Ride Home, Free T-Shirt, Free Hug”) and Desert Manor apartments (“No guns, knives or weapons allowed on ...

Why progress on Tivoli Village expansion is bogged down

Thu, Aug 27, 2015

Diners and workers at Social Bistro & Wine Bar, a restaurant in Tivoli Village, have a close-up view of the Las Vegas property’s expansion. And lately, staff say, there hasn’t ...

Las Vegas home sales surge, rivaling pace of boom years

Wed, Aug 26, 2015

Las Vegas homeowners are selling their properties at the fastest pace since the boom years, but prices remain well below that time ...

Pressure from lenders leads to more foreclosure filings in Nevada

Thu, Aug 20, 2015

Nevada had the fourth-highest foreclosure rate in the country in July, behind Florida, Maryland and New Jersey ...

Sorry, investors — house flipping in Las Vegas isn’t what it used to be

Wed, Aug 19, 2015

Southern Nevada remains one of the most popular places in America to flip houses, thanks to flipping-focused reality TV shows and Las Vegas’ lower home prices. But overall ...

Boost in new-home sales shows Las Vegas market on ‘steady upward trend’

Mon, Aug 17, 2015

Las Vegas builders continue selling more homes than last year in a “slow, stable” uptick in activity. Builders sold 583 new homes in Southern Nevada last month, bringing ...

Mortgages issued by lenders up this year, almost on par with national average

Fri, Aug 14, 2015

A total of 8,191 mortgages were doled out for home purchases in Southern Nevada in the three months ending June 30, up 8 percent from the same period last year, ...

International Game Technology working on deal to sell Las Vegas headquarters

Fri, Aug 14, 2015

CEO Marco Sala said IGT has entered into a letter of intent to sell the southwest valley headquarters, although the company will probably set up a lease-back ...

Developers still see potential in Coyote Springs, plan to revive the housing development

Fri, Aug 14, 2015

Coyote Springs, launched by former powerhouse lobbyist and current prison inmate Harvey Whittemore, has a golf course — a highly ranked one at that — and little else. But it ...

Not again: Report finds Nevada homes among most overvalued

Wed, Aug 12, 2015

Nevada homes not only were the most overvalued in the country at the peak of the housing bubble last decade, but prices are among the most inflated now, new data ...

Summerlin land prices are up, but sales are down in recent months

Tue, Aug 11, 2015

Howard Hughes Corp., developer of the 22,500-acre community, sold 58.1 acres of land in the quarter ending June 30, down 7 percent from the same period last year ...

Las Vegas housing prices dip 0.9 percent in July

Mon, Aug 10, 2015

Las Vegas resale housing prices dipped last month but remained higher than a year ago ...

House-flipping slows in Nevada, is more lucrative elsewhere

Wed, Aug 5, 2015

House-flipping comprises a bigger share of the real estate market in Nevada than in almost every other state, a new report shows, but the investment tactic is becoming ...

Bank, nonprofit show gratitude to Las Vegas veteran

Sun, Aug 2, 2015

Building Homes for Heroes, a nonprofit group that partners with Chase Bank to give honorably discharged, injured veterans free homes, provided a renovated two-story house to the Gutierrez family ...

Videos

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The struggling housing market is forcing a Henderson master-planned community into bankruptcy. Plus, the federal ...

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