(Source: Business Wire)
Known in the late 70's and early 80's as "Sin City," packed with prostitutes, nightclubs, gambling, sex and mobster scandals, Las Vegas has made a rapid transition over the decades to becoming one of the world's top luxury and family destinations; housed with 5 star mega-resorts, fine dining, top entertainment, conventions and high-rollers. Currently it is regarded as one of the nation's fastest growing cities with over 600,000 habitants as of 2008 and is expected to reach nearly 1 million by 2020. This survey information is provided by The Westward Fund.
After its huge boom in the real estate and housing market during 2003-2005, Nevada's housing construction began slowing in 2006. Presently in Las Vegas alone, there are now 27,000 vacant homes. In fact, the city has the highest foreclosure rate in the country with one in every 22 homes subject to a foreclosure filing, a rate of 4.5% which is seven times the national average according to RealtyTrac, a California based company that tracks foreclosure filings.
"We have for many years been the fastest-growing state, so when you slow down to a stall speed, it feels like a recession," said Keith Schwer, the director of the Center for Business and Economic Research at the University of Las Vegas, Nevada and an economist.
But Schwer, along with other business leaders and economic experts, insists that the housing crisis creates opportunities of more affordable housing for those who have been priced out of the market in recent years and that the downturn could help cultivate the next big fortune for the city.
"If you look over the longer cycles, these recessions are windows of opportunity to clean up our act and to manage our affairs better, and customers on the other end will come out with a better product," says Schwer.
Viva Las Vegas!!
Despite these economic hard times, Las Vegas is evolving into one of the America's hottest real estate Mecca's as it benefits from the slumping housing market. For example, home sales in the Las Vegas Valley jumped nearly 80% in April this year from a year ago, the Greater Las Vegas Association of Realtors reported in early May 2009.
"Sales activity appears to be increasing in some of the hardest hit markets as home prices have fallen to levels that are attractive to first-time homebuyers and investors," states James J. Saccacio, Chief Executive Officer of RealtyTrac. He further explains that 45% of the transactions were from distressed sales, foreclosures and short sales, which lead to the decline in the median price.
