Thursday, April 13, 2006

'All Bets Are Off In Las Vegas'

An update on Las Vegas foreclosures. "The number of foreclosures in Clark County, Nevada, increased by 36 percent in the first quarter of 2006 compared to the same period in 2005. 'All bets are off in Las Vegas now. With rising interest rates and lower appreciation on the properties people own, it is obvious that the area could see an increase in foreclosures for the next several months,' said Serdar Bankaci."

"Another problem in Clark County that is contributing to the rising foreclosure number relates to the housing shortage in 2003 and early 2004. According to Bankaci, during that time, many investors bought up properties hoping to cash in as the property values went up through basic supply and demand. 'That gamble did not pay off because the housing shortage ended and these investors, who had no intention of living in the houses, were stuck with overpriced properties,' said Bankaci."

"'Many of the homeowners used 'aggressive financing' to buy homes they could not afford,' said Bankaci. 'So, now many of the homes we see going into foreclosure have little equity left in them'."


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