Reports from many of the industry experts are still saying that the housing market in the Las Vegas area could still take decades for it to ever recover from such a disaster. Homes are still moving on the market, albeit at a much slower rate than it once was and typically for a lower price than they once sold for.
Top Key Factors for Housing Market Recovery
So what are some of the key factors into why the houses Las Vegas, NV market is still struggling to recover? For starters, the job market is a big factor. Las Vegas, more so than any other city is completely dependent on everyone else’s discretionary income. With the worldwide financial crisis, people have less money to spend, and fewer people are coming to Las Vegas. For those people who are fortunate enough to still be able to visit Las Vegas, they are spending less money overall than they once were. Those workers in the service related industry are directly affected the most by this.
Another factor as to why the Houses in the Las Vegas NV market is slow in recovery is because so many of the current homeowners are underwater on their mortgage. What is meant by this is that many of the homeowners, especially those that work in the service related industry, owe more on the home than the home is currently worth. The housing market in Las Vegas was severely hit, and home prices fell by more than 50%. It will be a very long time before the home values in the Las Vegas area will ever recover. Now Las Vegas homeowners cannot afford the monthly mortgage payment and even worse they cannot sell their home because they still owe more than the principal owed on their mortgage loan.
The End Result
The result is that more and more homeowners in the Las Vegas area are defaulting on their mortgage loans. There is an increased rate in foreclosures in the Las Vegas area, which is higher than the average across the United States. This increased in foreclosure rates then depresses the market even further. It seems almost like an endless cycle. Until the foreclosure rates hit the bottom, the housing market as a whole will not be able to fully recover. No one knows how long that will take.
For any homeowner, the best thing that he or she can do is to look long and hard at finding the absolute best partner to aid in the selling of their home. Las Vegas is a dicey market, more so than any other housing market, so a true professional is needed to help navigate the rough waters that are the Las Vegas housing market. Not only can they help a homeowner sell their home, but they can do so at a fair market price and within a reasonable amount of time.
Costello Realty & Management is a property management and realtor for houses in Las Vegas, NV. The company offers a broad range of services to handle both apartment rentals and house rentals. In addition to property management CRM also provides the service of tenant placement and maintenance services for its managed properties.
