The Las Vegas metropolitan area continues to be one of the hardest hit in the nationwide real estate crisis. Although some market indicators and real estate agents have suggested that Sin City has started to recover from the devastating impact of the recession and sub-prime mortgage crisis, the overall market of the Las Vegas real estate remains depressingly dismal. This is especially disconcerting considering the fact that a massive federal stimulus package has yet to have a significant impact on the belly-flopping fortunes of the Las Vegas real estate market.
Las Vegas has had an especially difficult time dealing with adjustable rate mortgages, predatory lenders, and risky loans, which peaked in popularity immediately prior to the sharp downturn in the state and national economy. Now, according to the Las Vegas Sun, “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.” This has led to a locally held consensus that the real estate will decline by an additional twenty seven percent in the upcoming year, unless something changes drastically before that time period arrives.
There is one potentially bright spot in the Las Vegas Real Estate - the otherwise catastrophic decline in home prices has created a glut of homes priced far below their estimated value. The same is true with the record-high foreclosure rates - in an attempt to recoup some of their initial investments, banks are looking to unload undervalued properties at extremely low prices. This creates an opportunity for anyone who was lucky enough to maintain a high amount of capital throughout the turbulent times of the recession. Anyone who has a large amount of available cash on hand should consider purchasing some of these properties, which are a great opportunity for investment rentals. These have the potential to create a consistent cash flow along with additional opportunities once the local market recovers. Hopefully the eight thousand dollar federal tax credit offered to first time home buyers will also boost this promising portion of the Las Vegas real estate market.
Market update provided by realestate-vegas.com and their Vegas team of professionals.