Las Vegas Nevada Real Estate
When I think of real estate today I think of Bear Sterns, I think of Lehman Bros. and I think of Merrill Lynch. All these companies had sizable investment in the real estate sector. The US property market, at one time, was one of the fastest growing property markets in the world. There was double digit growth in the prices of the property. The sellers were dictating terms of sale and the market was looking only one way and hat is up, up and up. Anybody who spoke about a price correction or caution in the market was considered to a pessimist. Financial institutions were helping the boom by lending huge money to people who wanted to buy property but did not have finances to do so. Also investors in real estate were very happy because they were seeing double digit growth in the property investments that they made. The signs of problem started when the prices of property began to fall. There was default in payment to banks by the mortgage borrowers as the amount they had borrowed was much higher than the prices of property that they were holding. Banks and financial institutions were left holding properties. The prices of these properties were falling by the day, which were affecting the balance sheet of many banks and financial institutions. The end result of all this was that many banks ended up being bankrupt.
Las Vegas real estate is a classic example of real estate market going bust. Las Vegas is the biggest part of Nevada real estate market. It is an internationally renowned city for its gaming, entertainment and shopping industry. Also known as the entertainment capital of the world it is sometimes referred to as the Sin City, because of the adult entertainment that it provides. The most famous hotels are located on Las Vegas Boulevard, better known as the Las Vegas Strip. Some technology companies have also set up a base in Las Vegas like Bigelow Aerospace, COM Partners, eVital Communications, Sky wire Media, Switch Communications and World Doc.
When real estate prices where at its peak, the property prices where growing at a rate of more than 30% p.a. in Las Vegas. Huge investments were made in real estate in Las Vegas. The sales were an attractive deal for tenants and hundreds of thousands Las Vegas homes were sold. The city was considered to be a gold mine to all the people who wanted to in real estate. The banks and the financial institutions were making an all out effort to disperse property loans. Real estate was considered a gamble were loss was not a probability. Many conservative investors let their guard down and invested handsomely in real estate. Slowly when the property prices began to fall the investors and the institutions began to feel the pinch. Many optimists who had held on to their property expecting a further rise where cursing there decision and the pessimists were proving to be right. The prices of real estate began to fall drastically. The prices were falling more than 30% year on year basis. All
this also affected the sale of real estate. The new and old home sales dropped by more than 30% year on year basis. Therefore it is very important we analyze the market ourselves before making any investment.
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