80 percent of Las Vegas homeowners underwater on mortgage

[zengrifter]

Report: 80 percent of Las Vegas homeowners underwater on mortgage

By Buck Wargo
Thursday, Nov. 11, 2010 | LasVegasSun.com

Las Vegas home values as measured by Zillow fell 4.2 percent in the third quarter and pushed the region’s percentage of underwater properties to 80.2 percent.

The number of homes underwater -- when property owners owe more on their mortgage then the home is worth -- increased from 78.1 percent in the second quarter, the Seattle-based firm reported. Phoenix ranked second with 68 percent underwater during the third quarter.

“The high percentage of homeowners in negative equity continues to be troubling in that it represents a huge number of people who are not only more vulnerable to foreclosure but who are essentially trapped in their current homes and are prevented from selling and buying a new home,” said Zillow Chief Economist Stan Humphries. “This has profound implications for future demand and will be a millstone around the neck of the housing market.”

MORE- http://www.lasvegassun.com/news/2010/nov/11/report-80-percent-las-vegas-homeowners-underwater-/

 

[shadroch]

Thats misleading.
It's not 78 percent of homeowners. It's 78 percent of mortgage holders. Big difference. for many years, homes in Vegas were so cheap, people selling homes in NY, Cali and many other places ended up paying cash for their homes in Vegas.

 

[aslan]

Thats misleading.
It's not 78 percent of homeowners. It's 78 percent of mortgage holders. Big difference. for many years, homes in Vegas were so cheap, people selling homes in NY, Cali and many other places ended up paying cash for their homes in Vegas.

Vegas is a great place to find a home due to the low, low prices. People tend to think that it has only one industry, gambling, so they shy away. I think they have another large industry as well, retirees, and as you said, many of these people bought their homes for cash, so they are solvent, plus many live on guaranteed fixed incomes. Like Phoenix, AZ, most of Florida, and other retirement havens, these people need a whole plethora of personal and professional services, not the least, medical and legal.

I have met tons of good people here. OTOH, I would NOT want to raise a family here. I may just be old-fashioned, but it seems like their are more "traps" for kids here than the ordinary town in America. For a mature adult, without addictions, the town has a lot to offer and few downsides, the largest you hear people talk about, the summer weather. Ideally, it is good to have a second place, doesn't have to be a palace, in a cooler region of the country. Millionaires aren't the only ones who can afford two homes anymore.

 

[zengrifter]

I may just be old-fashioned, but it seems like their are more "traps" for kids here than the ordinary town in America.

Not at all. I found more 'nature', mountains, lakes, outdoors recreation, etc.
in LV as a teenager then in SoCal. And look how I turned out! zg

 

[aslan]

Not at all. I found more 'nature', mountains, lakes, outdoors recreation, etc.
in LV as a teenager then in SoCal. And look how I turned out! zg

Oy vey!