Las Vegas Sun

February 14, 2016

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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

Q+A: Zillow economist explains why L.V. housing market hasn’t fully rebounded

Thu, Jan 7, 2016

Zillow chief economist Svenja Gudell spoke with VEGAS INC this week about underwater homes, their impact on the market and ...

Developer scoops up 38-acre IGT campus in southwest valley for $75M

Tue, Jan 5, 2016

Developer Doug Roberts is one of many investors building large industrial properties in the valley without tenants lined up. Now he’s got another big property to shop around ...

Westin Lake Las Vegas sells for 84 percent less than previous owners paid

Tue, Dec 22, 2015

The Westin Lake Las Vegas hotel, which as a prior brand crashed financially along with the lavish community it’s built in, has a new landlord. The 493-room Henderson resort ...

Analysis: In Las Vegas, the price of new home vs. resale is higher than average

Fri, Dec 18, 2015

Thinking about buying a new home in Las Vegas? Get ready for sticker shock. The gap between prices of new and resold homes is wider than the national average, which ...

After delays, Federal Justice Tower will open next month in downtown

Wed, Dec 16, 2015

Daniel Bogden, Nevada’s top federal prosecutor, has been waiting to move his offices to the new Federal Justice Tower. The downtown office building is under construction across the street from ...

Southern Nevada’s real estate industry being resurrected

Mon, Dec 14, 2015

Las Vegas’ commercial real estate industry soared with the boom, collapsed with the bust, then was quiet for a few years. Today, business is picking up ...

Q+A: Homebuilder in Rhodes Ranch, Tuscany discusses state of market

Fri, Dec 11, 2015

Homebuilder Don Boettcher recently spoke with VEGAS INC about Century Communities' developments, as well as the valley’s housing market and the go-go years when ...

Final part of Showcase Mall on Strip sold for $83 million

Wed, Dec 9, 2015

It took them more than a year, but a group of New Yorkers have completed their nearly $370 million buyout of Showcase Mall on the Strip. Jordache jeans founders the ...

Report: Used-home prices flat, sales down

Mon, Dec 7, 2015

Las Vegas used-home prices were flat again last month as buyers drastically cut back on purchases, amid a months-long slowdown in deals, a new report shows. The median sales price ...

Fewer underwater mortgage holders, but Las Vegas still at the top

Wed, Dec 2, 2015

The share of Las Vegas homeowners who are underwater continues to slide, but it remains highest among large U.S. cities. Some 22.1 percent of Southern Nevada homeowners with mortgages were ...

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 ...

Videos

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