Bottom-scraping prices for foreclosed-upon and bank-owned homes mean bargains for savvy buyers

How low can it go?

Some real-estate market watchers predict Las Vegas will reach bottom when home prices match those in Detroit, one of the nation’s hardest-hit cities for foreclosures and unemployment.

Homes are reportedly selling for just a few thousand dollars there.

Las Vegas is getting close. The Greater Las Vegas Association of Realtors reports that the cheapest single-family detached house for sale on the Multiple Listing Service is $10,000.

It’s an 1,160-square-foot, single-story home with three bedrooms and a bath, built in 1957, at 1389 Lawry Ave., near Martin Luther King and Lake Mead boulevards.

The bank-owned home lacks amenities such as a pool and spa, built-in backyard barbecue and custom landscaping, and needs repairs. However, it features decorative wrought-iron bars over the windows and reinforced-steel dead bolts on the doors.

What do you expect for $8 a square foot?

There are 10 homes listed for sale in Las Vegas for less than $25,000. Most are fixer-uppers in older parts of town, Realtor Robin Camacho of top10realestatevalues.com said.

Interested in a condominium?

She found 12 units on the Multiple Listing Service between $11,000 and $20,000, again not in the most desirable areas. At the bottom is a 776-square-foot, two-bedroom unit at 1720 W. Bonanza Road for $11,500.

Her best deals are found primarily in the east and north areas of Las Vegas. They’ve been built since 2000 and are priced from $55,000 to $100,000.

Some need work and some are ready for move-in, like the 1,400-square-foot, two-story home near Sam Boyd Stadium that’s listed for $62,000. All it needs is a fresh coat of paint — maybe just wash the walls — and the carpets cleaned and it could be rented tomorrow, Camacho said.

The home sold new for $217,000 in 2007 and will probably get bid up to $85,000, she said.

Tim Sullivan of San Diego-based Sullivan Group Real Estate Advisors said some home prices may fall even more.

"I think you will find that a few poorly located homes may see further price drops," he said. "But the best stuff may be leveling soon."

The key to price stability in Las Vegas is jobs and foreclosures, he said.

Camacho uses about 70 different factors to determine her top 10 deals, including price, taxes, amenities, condition and location of the home. Homes rotate in and out of her Web site almost hourly as new homes come on the market, she said.

"We’re looking to show houses that are the best value for our client’s money," Camacho said, "not just the best price."

Investors are snapping up some of the deals for rentals, looking to beat any possible price turnaround, she said. The median price of existing single-family homes in California turned up 4.2 percent in May to $267,570.

The median price in Las Vegas was $130,000 in May, unchanged from the previous month, Home Builders Research reported. It’s down 43.5 percent, or $100,000, from a year ago and has returned to the same level of December 2000.

Home Builders Research President Dennis Smith said he’s hearing from Realtors that real estate-owned assignments from the banks are increasing dramatically. Some of those are tentatively going to be listed at $40,000 to $50,000, he said.

How long it takes the marketplace to absorb these homes will help signal when we can expect to see the bottom of the resale housing segment, Smith said.

"The reason prices, especially resales, continue to go down is because that’s all that’s selling," he said. "Why is that? Because the lending environment has changed to where it’s difficult to obtain a new loan on anything but (Federal Housing Administration) FHA and (Veterans Affairs) VA."

An excess supply of homes on the market — many of them vacant and in foreclosure — continues to put downward pressure on prices, economist Keith Schwer of the Center for Business and Economic Research said.

Nevada has been identified as one of four housing bubble states and has experienced the highest rate of foreclosures in the nation.

The Case-Shiller Home Price Index followed a tight trend line for Southern Nevada from 1987 to 2002, followed by a modest increase in 2003. From 2004 to 2006, the index took off vertically, peaking in 2006, then descending steeply into March. It’s now dipped below the trend line, signaling a return to housing affordability in Las Vegas.

Sellers have slowly and reluctantly lowered home prices, but not enough to soak up excess inventory, Schwer said.

"We have seen housing price declines over time," he said. "Housing markets invariably adjust slowly to an excess supply, but rapidly to excess demand."

Housing analyst Smith doubts that median prices in Las Vegas will ever go as low as Detroit.

"Detroit is home to GM," he said. "How many people are moving from Detroit to Las Vegas and how many people are moving from Las Vegas to Detroit? I don’t know any."

Contact reporter Hubble Smith at hsmith @reviewjournal.com or 702-383-0491.

ad-high_impact_4
Business
Small businesses struggle to find qualified candidates
A 2018 survey found that over two-thirds of small businesses in Nevada find it somewhat to very difficult to recruit qualified candidates. Bailey Schulz/Las Vegas Review-Journal
Nevada secretary of state website offers little protection against fraudulent business filings
Property developer Andy Pham tells how control of his business was easily seized by another person using the secretary of state website.
Caesars may be going solo in its marijuana policy
Several Southern Nevada casino companies aren’t following Caesars Entertainment’s lead on marijuana testing.
How much is the Lucky Dragon worth?
Less than a year-and-a-half after it opened, the Lucky Dragon was in bankruptcy.
Gyms and discount stores take over empty retail spaces
Grocery stores used to draw people to shopping centers. But many large retail spaces have been vacant since 2008. Discount stores like goodwill and gyms like EOS Fitness are filling those empty spaces, and helping to draw shoppers back in. K.M. Cannon/Las Vegas Review-Journal
Funding source of Las Vegas stadium for the Raiders is sound, expert says
The stadium is funded in part by $750 million of room taxes, the biggest such tax subsidy ever for a professional sports stadium. Robert Lang, executive director of Brookings Mountain West and The Lincy Institute at UNLV, says that is a good use of public funds. (Richard Velotta/Las Vegas Review-Journal)
Las Vegas needs light rail, expert says
Robert Lang, executive director of Brookings Mountain West and the Lincy Institute said he is afraid of a "congestion mobility crisis." Las Vegas needs a light rail system, he said, to accommodate the city's growing number of attractions. (Richard Velotta/Las Vegas Review-Journal)
Three takeaways from Wynn Resorts' Earnings Call
Matt Maddox came out swinging in his first earnings conference call as Wynn Resorts chief executive officer, boasting of record Las Vegas quarterly revenues and applicants lining up for work.
Star Wars VR Comes to Las Vegas
Sneak peak at the new "Star Wars: Secrets of the Empire" VR experience at the Grand Canal Shoppes.
Elaine Wynn continues her fight to change Wynn Resorts board
Elaine Wynn, the largest shareholder of Wynn Resorts Ltd., is seeking to kick a friend of her ex-husband Steve Wynn off the company’s board of directors. (Todd Prince/Las Vegas Review-Journal)
Zillow is getting into house flipping in Las Vegas
Las Vegas Review-Journal real estate reporter Eli Segall says flipping houses has waned in popularity after the housing bubble burst.
Ellis Island Buys Mt. Charleston Lodge
Ellis Island, which operates a casino, brewery and hotel just off the Strip, purchased the Mt. Charleston Lodge in early April.
Casinos to be penalized for allowing drug-impaired customers to gamble
Nevada Gaming Commission Chairman Tony Alamo talks about an amendment making casinos subject to the same disciplinary standards of preventing people to gamble if impaired by drugs as they are for letting them play while intoxicated by alcohol.
Terrible Herbst to open large travel center in Southern Nevada
The 50,000-square-foot commercial travel center will include 96 fuel pumps and the third White Castle restaurant in Southern Nevada. Wade Tyler Millward reports.
Art Bell’s Top 10 Shows
A selection of radio host Art Bell’s most popular shows.
Hooters owner talks about room upgrades at his hotel-casino
George Ruff, founder and senior principal of Trinity Hotel Investors L.L.C., owner of Hooters Hotel and Casino in Las Vegas, talks about recent room upgrades at the hotel. K.M. Cannon/Las Vegas Review-Journal
Passengers Discuss Allegiant Air
Allegiant Air passengers voice their views on the airline at McCarran International Airport on April 16, 2018. (Bailey Schulz/Las Vegas Review-Journal)
Longtime Las Vegas attorney John Momot dies at age 74
Criminal defense attorney John Momot, who represented mob figures and even played himself in the movie “Casino,” has died.
Trump Slams Amazon for Not Paying Enough in Taxes
Trump Slams Amazon for Not Paying Enough in Taxes Trump tweeted his concerns about the company on Thursday. This isn't the first time Trump commented on the issues via Twitter. August 2017 December 2017 Amazon did hold back on paying state taxes in 1995, but the company has been routinely collecting state sales taxes since then. In 2016, the company's report from the Securities and Exchange Commission confirmed it paid $412 million in taxes.
David Copperfield in court after man injured during magic trick
The attorney for a British man who is suing illusionist David Copperfield said his client suffered serious injuries after being called on stage during Copperfield's show at MGM Grand.
eyecandylab CEO shows augmented reality during NAB
Robin Sho Moser, CEO and co-founder of eyecandylab gives an augmented reality demonstration at his booth during the National Association of Broadcaster Show at the Las Vegas Convention Center. K.M. Cannon/Las Vegas Review-Journal
Trends in access to capital for local black business owners
Denette Braud, owner of Braud’s Funnel Cake Cafe, talks about what owning her own business means to her.
Sir Richard Branson announces purchase of Hard Rock Hotel
Sir Richard Branson, founder of the Virgin Group, has acquired the Hard Rock Hotel with partners and plans to turn it into a Virgin-branded property by the end of 2019.
Calvary Christian Learning Academy, “There was no fair warning.”
Samantha O’Brien, whose three-year-old daughter attended the Calvary Christian Learning Academy daycare, found out Monday night when her daughter’s teacher called about the school closing.
Adobe unveils #HackTheBracket application for March Madness
Adobe unveiled their #HackTheBracket application at the Adobe Summit trade show at Sands Expo. People can use data from Adobe Analytics to make their bracket for March Madness. K.M. Cannon/Las Vegas Review-Journal
Adidas Signs Yankees' Star Aaron Judge
Adidas Signs New York Yankees Star Aaron Judge The slugger is set to don a new set of stripes this season after signing with the apparel company. Aaron Judge Terms of the deal were not disclosed. The deal includes branding on his batting gloves and wristbands. Judge, the AL's reigning Rookie of the Year, was previously under contract with Under Armour since 2014. Judge won the American League Rookie of the Year award last season after setting an MLB record for most homers in a rookie season (52).
Esports athletes are sponsored, too
Meet Red Bull-sponsored professional esports player Daryl S. Lewis, better known by his in-game name Snake Eyez. Nicole Raz Las Vegas Review-Journal.
Bettor Investments turned into a bad bet
Bettor Investments formerly operated a Nevada-licensed entity betting operation. The company promised “conservative growth, profits and stability for our investors.” Matt Stuart, who ran the fund, shut it down in late 2016 and never made good on an agreement with shareholders.
Starbucks Will Give You $10 Million for a Better Cup Design
Starbucks Will Give You $10 Million for a Better Cup Design Get your thinking caps on because the company is looking for a new cup that's easier to recycle. The $10 million grant challenge sees Starbucks partnering with investor group Closed Loop Partners for the project. According to CNN Money, Aside from the new cup design challenge, Starbucks stated it will test a cup with an inner lining made from plant fibers to prevent hot liquid from leaking. Will you join the challenge for #Bettercups?
Las Vegas bartenders who worked the Route 91 Harvest Music Festival question what they were paid
Reneé Black, left, and her husband Griffin Black talk to the Review-Journal at their home in Las Vegas, Tuesday, March 6, 2018. Reneé was a bartender at Route 91, and Griffin was a bar back. They were hired as independent contractors, but received forms months later indicating they were employees. They also were never paid their last day of tips. Nicole Raz/Las Vegas Review-Journal.
TOP NEWS
News Headlines
Events
Home Front Page Footer Listing
Circular
You May Like

You May Like