We all know that many parts of the country are experiencing either a flat or a down market when it comes to real estate. Just today I read that Las Vegas, once one of the hottest markets in the country, now has one of the highest foreclosure rates in the country.
From December 2005 to December 2006 foreclosures in Nevada went up almost 97%, mainly in the Clark County area, which is where Las Vegas is located. Approximately 1 in 277 households in Clark County is in the foreclosure process!
The article I was reading went on to say that the vast majority of these loans were held by speculators, who bought properties hoping to filp them before the first mortgage payment came due, and who’ve been unable to sell those properties. But, mixed in with the speculators are the folks who got too extended on adjustable rate mortgages, with no-money down, interest-only or deferred-interest-only mortgages and who aren’t able to pay the higher, adjusted rates.
So, does that make Las Vegas a market worth looking into? Could be – but I suspect the odds may be a bit long on a quick recovery. I’m told that there is approximately a year’s worth of inventory on the market in the Las Vegas area right now. But if you’re looking for some good long-term acquisitions, Las Vegas could be the place to be.
If you’re heading that way (to the Mini-Maui and Financial Fluency events this coming weekend, for example), you may want to check out some properties while you’re in town. You just might find a winning hand waiting for you.