Las Vegas Sun

November 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

Developer spending millions to halt decay in Las Vegas’ Huntridge area

Wed, Nov 25, 2015

Las Vegas investor J Dapper plans to spend a few million dollars to revive a collection of downtrodden properties clustered around the intersection of Maryland Parkway and Charleston Boulevard. And ...

Site of stalled SkyVue observation wheel for sale on the south Strip

Tue, Nov 24, 2015

After the recession clobbered Las Vegas, real estate investor Howard Bulloch still had big plans for the south Strip, landing approvals to build an amusement park and breaking ground on ...

Report: Troubles in housing market remain like ‘unwanted house guest’

Mon, Nov 23, 2015

Las Vegas builders sold the fewest homes and pulled the fewest permits in months in October, a new report shows. And while business this year remains above ...

Easier in the ’burbs: Why residential development hasn’t taken off downtown

Thu, Nov 19, 2015

Developer Eric Cohen spent a lot of time trying to figure out downtown’s housing market and whether he could pull off an apartment project there. His company moved to former ...

Suburban Las Vegas office tower sells for $18.25 million

Tue, Nov 17, 2015

One of the few office towers in the Las Vegas suburbs has changed hands again, and its price keeps dropping. The eight-story Bank of America building off Rainbow ...

Las Vegas man says mortgage firm, Bank of America defrauded him

Tue, Nov 10, 2015

Michael Bondi contends he's being pressed to repay a home loan that was written off. In a lawsuit against Bank of America and Nationstar Mortgage, the Las Vegas resident claims ...

Q+A: Convenient location adds luster to Cadence master-planned community

Tue, Nov 10, 2015

When Mark Paris was helping develop Summerlin, a newspaper headline at the time dubbed newly opened Summerlin Parkway the “freeway to nowhere.” Paris now leads ...

Las Vegas home resale prices stagnant in October but surge on the year

Mon, Nov 9, 2015

Las Vegas resale housing prices stayed flat last month and sales volume slid again, but both were higher than a year ago ...

Tips and tricks to avoid common renovation mishaps

Mon, Nov 9, 2015

Home improvement projects can be fun: Upgrade your space. Redo your look. Fix a nagging problem. But, as many of us know, they also can be a nightmare, with flaky ...

Ritzy real estate: Here are the most expensive homes sold in Las Vegas this year

Fri, Nov 6, 2015

Casino developer Gary Primm has been trying for years to sell his Las Vegas compound, listing it for $21 million at one point. The mansion recently drew a bid for ...

Investors still see value in flipping homes in Las Vegas

Wed, Oct 28, 2015

House flippers aren't giving up on Las Vegas, even though profits are sliding here and rising elsewhere. Flipping accounted for 8.7 percent of home sales in Southern Nevada in ...

Investors buy Summerlin health-club building for $51 million

Tue, Oct 20, 2015

The sales price was the highest nationally this year for a freestanding, single-tenant retail building, according to Faris Lee Investments broker Patrick Luther, who represented ...

Las Vegas’ foreclosure rate rises to No. 2 in the nation, report says

Fri, Oct 16, 2015

Las Vegas’ foreclosure activity ramped up last month, making the valley one of the hardest-hit areas in the country, a new report shows. One in every 480 homes in Southern ...

Las Vegas still ranks among nation’s worst for share of vacant houses

Thu, Oct 8, 2015

In a sign that abandoned homes still blight Southern Nevada neighborhoods, Las Vegas has a larger share of vacant houses than most U.S. cities and a bigger percentage of homes ...

Report: Las Vegas housing market more stable, predictable

Thu, Oct 8, 2015

Las Vegas used-home prices have been largely flat for four consecutive months, a new report shows, and sales volume is sliding. The median sales price of single-family homes last month ...


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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