Las Vegas tops the worst cities, in terms of last year’s total foreclosure figures.
Nothing has changed in the real estate market of Las Vegas. The numbers are still drastic figures, houses are piling up in the inventory and the housing market’s risk takers are down with their chips. It’s clear then that the Sin City has been renamed “Foreclosure City” by CNNMoney.com. In their report, the news group cited the very turbulent past year for Las Vegas, “Las Vegas had the largest number of foreclosure filings of any city last year, with 12% of its households receiving at least one during the year, according to RealtyTrac… That was more than five times the national average. ”
And who’s to blame? The same report writes, “In cities such as Las Vegas, Phoenix, Miami and Bakersfield, Calif., soaring home prices of the mid 2000s drove homebuyers to desperate measures, such as taking on hybrid adjustable rate mortgages, also called toxic ARMS. These products only remained affordable as long as home prices grew; once prices stopped rising, borrowers began to default.”
But how come sales have not picked up yet in Las Vegas although an observed decline in foreclosure filings among major U.S. cities is already going on?
1 – Service workers – The service workers are caught in the middle of the foreclosures crisis in Las Vegas because they moved out here to service the industry that never sleeps. They saw their property values escalate to tremendously high numbers and some made money in the process. But many either refinanced too many times or moved at the tail end of the property investment boom and have been caught in the crossfire and are losing their homes to foreclosures.
2 – Easy Lifestyle – Believe it or not there is a group of people that moved to Las Vegas looking for what we call an easy lifestyle. Las Vegas has tremendous weather and is filled with people just looking for a good time. On the out skirts of the strip that houses all of the casinos and nightlife that Las Vegas offers are sprawling communities of people living the good life. After all, the good life is what they came looking for.