Las Vegas is known for many things, including contributing to Nevada becoming the fastest growing state between 2000 and 2010. When we think of Las Vegas, we think of bright lights, casinos and money. Just a year ago, it was a good place to invest in real estate and flip houses, where buying low and selling high after a few renovations would make you thousands.
Unfortunately, the lights are beginning to dim on the Vegas housing market. Las Vegas is quickly becoming one the largest cities facing record foreclosure rates. It is estimated that nearly 1 in 4 homes in Las Vegas is in some stage of the foreclosure process. Even worse for homeowners, home values have dropped nearly 40 percent.
It Isn’t All Bad
Well, it depends on who you ask. For homeowners that ended up in foreclosure as the result of the effects of the economy, the current state of the Vegas housing market is an unfortunate occurrence. But for others who have managed to hold off on buying a home until now, the market is prime for the taking.
The increase in foreclosure numbers and drop in home prices has paved the way for many first time homebuyers to take advantage of a great opportunity. Local real estate agents are reporting that homes bought for over $300,000 can be found for less than $100,000 today. Of course, not all of the properties are in good condition, but there is a federal aid program that allows homeowners to roll in the costs for renovations and repairs into their mortgage. Many people are jumping at the chance to get in at, what they hope is, the bottom floor. Only time will tell if the motto “nowhere to go but up” hold true.