Nevada Real Estate Market

The Nevada real estate market was one of the Homes For Sale hardest hit by the foreclosure crisis. The state has one of the highest foreclosure rates in the country. Nevada has topped the foreclosure lists since the start of the recession. The average value of a house in the state has fallen by almost 50 percent from the highs experienced in 2006. The Nevada real estate market had a foreclosure filing that was 3.5 times the national average. As of January 2010, one in every 95 households in the state had received a foreclosure filing according to RealtyTrac. This was the highest in the nation. Even as the economy slowly recovers, there are various reasons why the Nevada real estate market continues to struggle.

High unemployment levels is one of the biggest reasons why demand for properties and land has not picked up in southern Nevada. The state has one of the highest unemployment rates in the whole country. The high unemployment rate has made it more difficult for people to pay their mortgages. It also makes it very difficult for people to buy houses. New housing construction has decreased significantly as developers see very little demand for new homes.

The majority of mortgages in Las Vegas are “underwater.” This means if you bought a home at the height of the housing boom, it is now worth about half as much. Many people now have mortgages that exceed the value of their homes. Instead of making the monthly payments, more people are choosing to walk away from their homes.

Nevada, especially Las Vegas, was an economic hub during the housing boom. Many people moved to the area because of the increase in housing sales and home values. It was one of the hottest housing markets in the country. Buyers and speculators alike bought homes at inflated prices. They expected values and prices to continue to go up. However, when the bubble burst, the record high home values began to plummet as quickly as they accelerated. The housing markets in Las Vegas and Reno are still correcting themselves and adjusting their prices to meet with the lower demand and higher supply.