Las Vegas is one of the areas that were badly hit by the 2008 real estate crisis in the country. Surprisingly, the areas that were greatly affected by the crisis are increasing the most in the past few years. For instance, Las Vegas is now on the track, thanks to the local Las Vegas property management companies that have worked tirelessly to market properties in the region. We all know that Las Vegas real estate was left for dead during the recession and many Las Vegas property managers had to close their businesses. However, real estate has come back to life and is rapidly catching up with the rest of the country. Investors are now looking for properties to buy in the region, both new and old properties are going like hot cakes. Moreover, home developers are working on new projects in the region and new apartments are coming up. Employment and wages have climbed and Las Vegas property management businesses are booming. The following is an insight into Las Vegas’ real estate recovery.
Foreclosures and underwater homeowners
When the economy crashed after the 2008 real estate crisis, Las Vegas Homeowners were the most affected lot. Most of them were unable to pay their mortgages and some lost their homes to lenders. Home values in Las Vegas also declined and the mortgage debt outweighed the value of many homes in the region. This made it impossible for homeowners to sell their properties to pay their mortgages. However, the situation has improved in the recent years and homeowners are now able to pay their mortgages. According to RealtyTrac, the number of mortgage defaulters was about 17800 in the first quarter of 2009, which is a clear indication that the situation is improving and more homeowners are able to repay their home loans on time. Cases of foreclosures have also gone down in Las Vegas in the recent years.
The value of homes has climbed tremendously in Las Vegas, although it has not reached the peak and there’s still room for growth. For instance, the median home value in Las Vegas earlier this year was about $201900; this is roughly a 9 percent increase from the median home values same time in 2015, according to Zillow. It is worth noting that the real estate market has reached highs above pre-bubble values in some cities in the country, but not in Las Vegas. However, the market is doing very well, bearing in mind that Las Vegas Real estate market sunk down the most during the crisis. Generally, homes in the area are appreciating gradually, an indication that the real estate market is back on the right track. For example, Summerlin property management has been booming due to the increasing demand in this surrounding area of Vegas. It is a matter of time and home values in the region will reach highs above the pre-bubble burst values.
Construction and selling of new homes
It was difficult for homebuilders to sell new homes in Las Vegas before the bubble burst. Subsequently, it became difficult for homebuilders to access finances to construct new homes. After the bubble burst projects went bankrupt, builders closed their businesses and homebuyers disappeared. However, Las Vegas is picking up once again after many years of decline and home sales are climbing. Although the Las Vegas real estate market is nowhere close to where it was in the 1990s, we could say there is light at the end of the tunnel.
According to the Home Builders Research report, in 2015 Las Vegas builders were able to sell about 6800 new homes in Clark County. This is roughly a 13 percent increase from the number of new homes sold in 2014. In 2016, builders have sold about 1530 homes by the end of the first quarter, which is an increase of about 9 percent of the number of new homes sold during the same time in 2015. This is a clear indication that real estate in Las Vegas is shooting up tremendously. When you look back to the history, builders sold about 17900 new homes in 1995. The number went up to 39000 in 2005 but declined to about 3900 in 2011. According to Dennis Smith, founder of Home Builders Research, the market will catch up with the rest of the country quicker if the issues of land shortage, lack of financing and other factors hindering the market to grow are addressed.