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Is there a single family home housing crash in Las Vegas?
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Housing bubble bursts in Vegas?
Anyone paying attention to the real estate market in the USA, will have heard of the drama on October 2, 2004 when builder Pulte cut prices at its four Las Vegas Del-Webb communities by 20%."Dyan Harmell had bought 19 homes with 4-million dollars in mortgage debt. Pulte's in-house lender continued to sell her homes even as she showed a loss on her rental income (her sole income).
Dyan Harmell said that 'Pulte had me close Monday, Wednesday and Friday on two houses each so it would not show up on my credit report'."
The neighborhood this lady bought in is the Solera neighborhood. Solera is an amazing place with lots of empty houses and desperate-sounding signs. For renting this place is not suitable, because:
- Solera is an age-restricted community. 55 and over. Not a good demographic for rental properties. Most retired people either have homes of their own, or else they are living on social security and need to rent something small and cheap.
- Solera is way-the-heck south of the center of town. Renters like to live close to work, grocery stores, gas station, and casinos.
Does this mean that there is a general housing crash in Las Vegas?
Not in my opinion.Even though Solera is extremely beautiful with its landscaped streets winding up the hills with killer views, it is an anomaly. You cannot extrapolate from Solera to the rest of Las Vegas. Solera probably did kill the hyper-appreciation in Las Vegas in 2004, but it did not reverse the trend.
Las Vegas is still appreciating about 10% annually.
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