Las Vegas Sun

May 4, 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

As home prices slow, tougher for homeowners to get ‘above water’

Thu, Mar 19, 2015

Las Vegas’ once-huge rate of underwater homeowners keeps improving, but as price-growth slows, the flow of borrowers escaping upside-down status has ...

Las Vegas foreclosure filings on the rise, report finds

Wed, Mar 18, 2015

Nevada’s foreclosure woes worsened last month as lenders seized more homes than in January and filed more default notices. One in every 569 homes statewide received ...

Comparing the hype: Citicorp then, Tesla now

Tue, Mar 17, 2015

Here’s what people said then, as Citicorp was being lured to Las Vegas, and recently, as Nevada was luring Tesla to build a massive battery plant in Reno, as shown ...

Now-vacant banking center at The Lakes once brought hope for Las Vegas economy

Tue, Mar 17, 2015

When the powerful out-of-state company looked to build a big facility in Nevada, there were high-fives all around. Backers said it would diversify the economy, pump in hundreds of technical ...

Fire does $100,000 in damage at vacant Henderson house

Mon, Mar 16, 2015

Firefighters arrived at a house in Henderson on March 16 at about 12:15 a.m. where heavy smoke was coming from the rear of the home and extending to the neighbor's ...

Rebuilding years in Southern Nevada

Mon, Mar 16, 2015

After the bubble and burst, Las Vegas’ commercial real estate industry is picking up again. Weak spots remain, but mothballed projects are being completed, warehouse construction is on the upswing, ...

Summerlin-area penthouse sells for a whopping $7.7 million

Wed, Mar 11, 2015

A Canadian real estate executive and his wife bought a penthouse in the opulent One Queensridge Place towers, in what’s reported to be the most ...

Las Vegas trend of homes on market with no offers seen as ‘troubling’

Tue, Mar 10, 2015

Las Vegas used-home prices rose last month, but industry pros are worried by the continued, “troubling” rise in ignored, overpriced listings.

Real estate in Las Vegas: It makes great television

Tue, Mar 10, 2015

Las Vegas has been a major player in reality television for years, with shows about pawn shops, tattoo artists, hot rods, casinos, cage fighters, limo drivers and polygamists. Now another ...

Report: House flipping in Las Vegas has scaled back but remains lucrative

Thu, Feb 26, 2015

House flippers are slowing down in Las Vegas and making less money than investors nationally, but they’re still doing plenty of deals here and ...

A tale of two ‘bargains’: One Las Vegas home sold for $8M, the other for $10K

Wed, Feb 25, 2015

At the base of Las Vegas’ western mountain range, a mansion in the Ridges, one of the wealthiest and most exclusive areas of town, has a movie theater with a ...

Analysis: Is construction-defect law stunting Nevada’s housing market?

Fri, Feb 20, 2015

Las Vegas’ once-battered housing market has improved the past few years but remains riddled with problems such as foreclosures, underwater borrowers, flat wages and ...

Las Vegas toasts goodbye to the Gramercy

Sun, Feb 15, 2015

It was almost 7:30 in the morning, on a Sunday no less, but in Las Vegas, when a building is about to be imploded, it’s never too early for a ...

Lenders are back to putting squeeze on delinquent Nevada homeowners

Wed, Feb 11, 2015

After backing off for a while, banks ramped up the pressure on delinquent Nevada homeowners last month, seizing more homes and starting the foreclosure process on ...

Las Vegas home market endures sluggish month

Tue, Feb 10, 2015

Las Vegas’ housing market started the year with mixed results, as prices were up from a year ago but sales totals dropped.

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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