Las Vegas Real Estate Market Still Having Issues
The Las Vegas real estate market is still facing issues – here’s why.
The housing market in Las Vegas and the surrounding area is much stronger than it was just after the economy collapsed. However, there are still issues that need to be resolved. In fact, a new report from WalletHub has analyzed the market and it was found to be the unhealthiest market in the United States.
Why Is Las Vegas on the Bottom?
The health of 25 of the largest cities in the country were ranked. Boston was ranked as the healthiest and Las Vegas was ranked at the bottom. Why? Because Las Vegas has the highest rate of homeowners who are underwater or those whose mortgage debt is more than the value of the home. Another reason is that it has the second longest time frame until homeowner’s mortgages will be paid off (24 years).
Las Vegas has a large share of “easy” mortgages or loans that are obtained without any income, assets, or debt proof, and has a large share of first time buyers who received help from local or state programs. Residents in Las Vegas have the lowest equity level or stake of ownership at 12 percent.
These findings were created using information from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
Las Vegas and the Housing Bubble
During the housing bubble and the subsequent economy collapse, Las Vegas was at the heart of it. The exorbitant prices and the continual building caused plunging property values, foreclosures, and a halt to construction projects in process. The housing market is beginning to see some signs of regaining health, however, as investors bought up cheap homes to turn into rentals.
So far this year, real estate sales and price of previously owned homes are up from the same period last year. In addition, the number of listings that just sit on the market has finally leveled off, after its steady climb over the past few years.
The high number of foreclosures and the number of borrowers who are still underwater on their loans is still a huge issue. With the fourth highest rate of foreclosure in the United States for the first six months, this is a huge issue that is still bogging down the health of Las Vegas real estate. Hopefully, we will continue to see progress in the number of foreclosures and the underwater loans to keep the real estate market moving in the right direction.