Monday, March 14, 2005

Las Vegas Home Glut: "Nearly 14,000 Homes"

When you read this Reuters story keep in mind that Las Vegas set the all-time record appreciation for a metro area in 2004.

"Resale homes are glutting the Las Vegas market with the inventory at nearly 14,000 homes in January," said Foreclosures.com president Alexis McGee. Such swift property market changes may be a result of heavy speculation.

Ms. McGee sees more trouble coming for Sin City. "The Las Vegas market is very fragile right now..An increase in borrowing costs, which we now see as inevitable, could knock many prospective buyers out of the market, drive the speculators out of town and create a new wave of foreclosures." Ouch! Tell us what you really think Alexis.

2 Comments:

At 8:32 PM, Blogger alexis said...

My grandfather was a pioneer of LV going back to the twenties, so I've seen alot of changes. I had a nice house in Henderson for a while too, although I live in Orange County. Vegas is a waypoint for Californian's trying to escape the mess we used to love calling home. As usual, Vegas' population is highly transient. Few people have roots there unlike most communities. There's relatively little industry outside of gaming, entertainment and retail. Running a factory there is a problem due to the electrical demands from air conditioning. Water is a big issue too as new homes cannot be assured of having been allocated enough water to keep a lawn green. I've watched the reports of hundreds of homes being built weekly. It is not sustainable as the infrastructure is not in place to handle it all. I've heard stories about homes selling for $ 750K and then the builder could not sell anymore. He built the same homes across the street from those he sold for $ 700K+ for just over $ 500K! 500K is too much for any reasonable house in that desert! Just think of the look on that poor buyer's face when his 700K house is now worth 500K! He still owes the money. He has been taken to the cleaners. Also, I've heard of a revolt building on the property tax issue as they have climbed right along. I've never understood why anyone should pay more for taxes when they have not realized any true gains on the property. It's all blue sky! The moronic government fills its pockets at the expense of retired and other folks whose only sin it they happened to buy a house. When will people learn that a house is not an investment but a place to live!

 
At 12:07 PM, Blogger Ben Jones said...

People are being handed $30K property tax bills for regular homes. I like to point out that if prices for labor or food had gone up this much it would be called a disaster, but they cheer when it is the roof over our heads..Thx Alexis

 

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