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Las Vegas Current Housing Market Conditions 2012
0 Comments | Posted by Tony Shaw in Henderson Property Management, home sales, Las Vegas Homes For Sale, Las Vegas Property Managers, Las Vegas Real Estate, Las Vegas Short Sale Information, short sales
Analysts are saying that the 2012 Las Vegas housing market is facing a daunting year with the subprime mortgage crisis that is currently hitting Las Vegas especially hard. The highest foreclosure rate in the US is in Nevada, and Las Vegas continues to remain in the top five.
This crisis poses a real risk for further development and growth because it creates a glutton of houses on the market, which in turn will slow the construction of new homes, and effect most property values. However, before we get too down and gloomy, we should recognize that is also creates an opportunity for housing that is more affordable for those who have in recent years priced themselves out of the market.
This crisis has lead to far too many homeowners facing foreclosure and the loss of their houses, because they cannot make their mortgage payment. This crisis is the result of lenders and banks approving loans that were risky, or giving subprime mortgages to those with poor credit scores or unstable finances.
These homebuyers were attracted by the low interest rates being offered. However, because so many of these mortgages were adjustable rate mortgages, also called ARMs. This meant that these same homeowners faced significantly higher interest rates in the future, and that meant payments were almost always impossible to make, which in the end lead to foreclosure. In addition, these same predatory lenders have been blamed for being unfair and making the situation worse by taking advantage of new buyer who were not informed.
There were also a significant number of investors who purchased homes right at the height of this market with the intent of flipping them to make a profit, only to watch the market decline. Las Vegas continues to struggle and grow even through these difficult times.
According to Moody’s Analytics, those Las Vegas home owners who were looking to sell may have to with 9 to get back 50% of their pre-recession value. Homeowners might see a 20 year delay before they are actually able to recover their full home price.
For those in the market to purchase a home the opportunities abound. With the number of foreclosures on the market, and the reduced market value this truly is a buyer’s market. As always, when real estate is involved the market benefits one side of the equation and is at a distinct disadvantage for the other side of the equation. For the time being and into the future analysts predict that it will remain the buyer who has the advantage.