Many speculators are feeling the heat in Nevada and it isn’t even July yet. Great article on Yahoo today about the plight of real estate investors in Clark County where supply is up 30% from a year ago, pushing sales and values of existing single-family homes down 38%. Flippers who last year rushed to put deposits on pre-construction homes are having to spend additional cash to pay off mortgages. Sadly, 1 in 30 homes went into foreclosure in 2006. Read the article for examples of risky investment decisions and their consequences.
We definitely saw the change in the market when we were house-hunting. Of the 30-35 homes we visited, only a half dozen were occupied. It was common for us to view 2-3 homes in the same neighborhood, each just a few doors down from the others.
It never feels good to profit from other people’s mistakes but last year’s rampant speculation has created a strong buyer’s market. If you are looking to move to LV (8,000 new residents join the valley each month), houses are affordable and sellers are willing to negotiate. Now is a great time to buy real estate in Las Vegas.