Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (24262)	10/5/2004 9:22:44 AM
From: ild	Read Replies (1) \| Respond to of 306849

What does $500,000 buy in LV? Pulte dropped prices from $490,000 to $420,000. Message 20601658

To: patron_anejo_por_favor who wrote (24262)	10/5/2004 7:41:05 PM
From: orkrious	Read Replies (3) \| Respond to of 306849

las vegas real estate from streetinsight thestreet.com Carter Dunlap Las Vegas means what to the housing bubble argument? 10/05/04 04:50 PM EDT Popping of the Las Vegas real estate bubble much worse than reported Homebuilders paired up with spec buyers made the problem much worse Plaintiff attorneys should skip Vioxx and head for LV Pulte Homes announcement came as a shock to all but the local real estate community. Today I caught up with a friend who is a Las Vegas real estate professional. He described a picture that is even worse than what I have read. As the market grew hot, more and more homes were going into contract with "investors". The builders supposedly restrained these spec buyers from doing this but in fact looked the other way as the deposit checks cleared. As the company cited yesterday, cancellation rates have hit 75% recently. My source says that is only the half of it. Although the company has reduced sales prices for houses in contract, that has only exacerbated the mess. Those who have been funded but not closed can't re-work the lending and are immediately in violateion of the loan-to-value ratios. Furthermore, all of those owners who recently closed are immediately underwater as exact comps close at discounts of 20% or more than their close. In addition to the contract cancellations, there is even more inventory in the hands of the spec buyers. Many own multiple houses on minimal down payments and now face double digit price declines. He described the streets as a sea of sale signs. In addition to the pain expereinced by the new homeowners and speculators, the entire real estate infrastructure is bracing for the lawyers. Brokers, lenders, appraisers and buyers. Can't even sort out who sues whom - first. This is all happening without rates rising. Clearly a market like Las Vegas with a lot of new built housing is not representative of the general real estate market. Or is it? none