Las Vegas Real Estate
The Las Vegas real estate market has nearly been destroyed by economic turmoil. The latest housing market reports claim that Vegas has the highest rate of foreclosure in the country, with one in every 9 borrowers receiving a Lis Pendens notice in 2010.
The burning question is will the Las Vegas real estate market ever recover from the fallout? Chances are good it will, but industry experts predict it will take at least 2 years before the lights over Sin City shine brightly again.
In 2010, Vegas witnessed a decline of 7-percent in foreclosure rates over the previous year. Unfortunately, this barely makes up for the 38-percent foreclosure rate of 2008. Although Vegas foreclosure statistics are declining, so are housing prices.
According to the Case-Shiller Indexes, Las Vegas property values fell nearly 13-percent in 2010 and expected to tumble another 6- to 7-percent by the third quarter of 2012. According to RealtyTrac, the average sale price of foreclosure homes in Clarke County is $123,500. Just 5 years ago the average sale price was $300,000. This equates to a decline in property values of 41-percent.
Local Market Monitor, a company based in North Carolina, has deemed Las Vegas as having the worst housing values in the U.S. Their analysis compares unemployment, job growth rates, and housing price cycle assessments. According to these assessments, Las Vegas home prices have declined 52-percent from their peak in 2008. This stems from high unemployment and an oversupply of residential housing.
Although statistics appear to be all gloom-and-doom, Las Vegas has become a buyer's market for real estate investors. According to DataQuick Information Systems of San Diego, investors purchased nearly half of all Las Vegas homes in December. Of the homes bought, 51-percent were purchased with cash.
When investors buy house for cash they often save upwards of 11-percent off the asking price. DataQuick reports the median price of houses bought with cash was $89,250 which is down from $100,000 just a year ago.
It makes perfect sense to invest in the Vegas market. Deciding when to buy will be a personal choice. No one knows for certain when housing prices will bottom out, but industry experts are certain prices will eventually go up.
Las Vegas provides opportunities to capitalize on the misfortune of those who have lost their home to foreclosure. This doesn't mean taking advantage of people down on their luck. It means creating win-win situations that benefit everyone.
All of those people who lost their house need a place to live. Many would like the opportunity to buy another house, but they can't because banks won't lend them money. Savvy investors offer owner will carry financing that allows tenants to buy the property while restoring their credit.
Several seller-financing options exist. The more popular include: lease purchase option agreements, rent-to-own contracts, subject-to, and seller carry back mortgages. Investors should obtain legal counsel prior to engaging in creative financing strategies. Some states prohibit certain strategies and all require filing specific documents through the court.
Just as with any real estate market, Vegas has its pros and cons. It's important to conduct market research to minimize risks. It can be beneficial to join local or online real estate networking groups and seek out seasoned investors familiar with the area.
We invite you to begin exploring the Las Vegas real estate market, along with learning more about the process of buying foreclosure homes and types of seller-financing options in our real estate investing article library.