Las Vegas Sun

June 30, 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

Retail rebound: Sahara Pavilion becomes latest major mall to change hands

Thu, Apr 16, 2015

Sahara Pavilion, at the northeast corner of Sahara Avenue and Decatur Boulevard, was once a hot spot for Las Vegas retail. Now, it's part of a trend in which Las ...

First quarter shows mixed signals in Nevada’s continuing foreclosure woes

Wed, Apr 15, 2015

One in every 209 homes statewide received a foreclosure-related filing in the three months ending March 31, the third-highest rate in the nation behind ...

Private university buys Nevada Cancer Institute building for its med school

Mon, Apr 13, 2015

The former Nevada Cancer Institute building will remain a part of the region's medical community. Roseman University of Health Sciences announced Monday that ...

Developments in southwest valley rise after years of delays and defaults

Mon, Apr 13, 2015

As the economy improves, few places are getting as much action. Developers are building or planning to construct apartment complexes, industrial properties, big-box retail and ...

Bounce in Las Vegas home sales might signal listings at ‘more realistic prices’

Wed, Apr 8, 2015

Despite a big jump in sales, Las Vegas used-home prices were flat month-to-month, perhaps indicating that fewer sellers are overpricing. The median sales price ...

Will Sandoval’s praise at IKEA’s Las Vegas groundbreaking soar higher than the sky?

Wed, Apr 8, 2015

Politicians are prone to getting excited for good news, and in Nevada, when it comes to real estate projects, no one gets giddier than the governor. Brian Sandoval has criss-crossed ...

Luxury Henderson apartment complex, abandoned during recession, ready for sale

Tue, Mar 31, 2015

When Paula Lane toured Vantage Lofts a few years ago, the stylish, mothballed Henderson condo complex was a scary sight. Windows were boarded up, birds were flying inside, upscale appliances ...

Las Vegas home prices leave wage growth in the dust

Wed, Mar 25, 2015

Las Vegas’ soaring home prices outpaced wage growth at one of the fastest rates in the nation the past few years. The average weekly wage in Southern Nevada last year ...

Photos: 20,000-square-foot Spanish Trail home on the market for cool $8 million

Tue, Mar 24, 2015

Although it was originally built in 1993, the home is still up to date. Laura attributes this to their vision when they were first building. Instead of filling their home ...

Designing for a new generation of homeowners

Mon, Mar 23, 2015

The millennial generation is growing up, and they see value in owning a home. Roughly 42 percent of millennials say they want to buy a house in the next five ...

Nest now: Home design trends for 2015

Sun, Mar 22, 2015

Armed with some basic design tips, a little creativity and a budget that can run the gamut from high to low depending on your comfort level, you easily can make ...

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 ...

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