BluefoxToday blog : Las Vegas real estate appeals to investors

Las Vegas real estate appeals to investors

Southern Nevada - including communities like Anthem, Henderson, North Las Vegas, Mountains Edge, Summerlin, Southern Highlands, Green Valley and Rhodes Ranch - housing market has become one of the favorite playing grounds for scores of investors. And for a good reason. Las Vegas property values have nose-dived to roughly the levels seen here about ten years ago, a time when they were deservedly called affordable. Now, as was the case then, a nice single-family, 3-bedroom house in a solid neighborhood can be bought for under $150,000.

This Las Vegas housing drift has definitely drawn the attention of real estate investors from all over.So much so that they purchased a serious 41.2% of homes for sale here in October, as was reported by MDA DataQuick, a San Diego real estate information boutique. They generally use cash to do that, giving them an advantage over those who need mortgage financing for the deal. Who can argue against a quick close? In essence they mostly are deep-pocketed entities with a well-designed plan. They also realize that flipping is a thing of the past, so the properties are usually rented out for the long-term.

And that's where some Southern Nevada homeowners can get a bit emotional. This applies especially to the newer Las Vegas developments where mortgage foreclosures tend to be higher and where prices have been subjected to a thorough flogging. Existing homeowners see houses around them going for half the price they paid for theirs a few years ago. That can make anyone call Alan Greenspan bad names. To make matters worse many of these homes are now being turned into rentals and that can be considered undesirable for a neighborhood. One or two of them here and there isn't a problem, but if 20 or 30% of the area is rentals, yes, it can change the dynamic to a point where the values will further deteriorate.

On the brighter side, real estate investor activity will remove from the inventory countless vacant homes that mortgage lenders tend to let go into disrepair after foreclosing on them. Banks are known by most accounts to be rather lousy property managers. Therefore, it often is better to have someone occupying a home than no one at all.



Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst - syndicated mortgage, housing and property management blog
My cell: 702-499-1006

Comment balloon 6 commentsEsko Kiuru • December 03 2009 11:46PM


I drove in one such area yesterday that was built in the "good times."  Apparent vacant homes and still lots of signs (shorts, REO, obvious distress.)  I would make a good bet that those that were occupied were likely tenant occupied.

It's sad, someday the "correction" will be over.

Posted by Renée Donohue~Home Photography, Western Michigan Real Estate Photographer (Savvy Home Pix) about 9 years ago

Esko: Thanks for the update. I appreciate it! It's good that there are opportunities again in your market. For so long, it sounds like there was virtually no activity whatsoever. I wish you well as the market continues to improve!

Posted by Paul McFadden, Pest Control, Seattle, WA. (Paratex) about 9 years ago

Esko thank you for pointing out both the positive and the negative on this.  All to often the positive gets left out, and people seem to concentrate on the negative.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) about 9 years ago


It's going to be a while, it seems, but we'll get there one day.

Posted by Esko Kiuru about 9 years ago


Market forces, with government assistance, are working hard to clean the mess up.

Posted by Esko Kiuru about 9 years ago


Just trying to present a balanced view. Thanx.

Posted by Esko Kiuru about 9 years ago