more bad news about real estate in Las Vegas

Sunny

From CNNMoney   ( Oct , 31, 2011)

"Home Prices Heading for Triple-Dip"
"  ...
Other cities expected to be hit hard include the not-so-lucky Las Vegas, which is expected to see home prices fall another 15.9% for a total loss of 66%; Riverside, Calif., is projected to fall another 14.8% (for a total decline of 61%); Miami is expected to decline by 13.2% (total loss: 57%), and Salinas, Calif. could drop by another 13% (for a total loss of 66%).
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eggplantgo101

回复 1# Sunny

10 best cities to buy a rental property

From CNN Money

Oct 31, 2001

Las Vegas

Average home price (2011): $130,100

Projected home price (2014): $120,000

Gross rent (2011): $922

Projected gross rent (2014): $966

Las Vegas has the highest foreclosure rate in the nation -- and many of those former homeowners now rent.

"Much of the large workforce in the casino industry consists of renters; the home ownership rate is a low 55%," said Winzer.

While the rental market in Sin City remains robust, rents have been squeezed, falling about 10% since 2007.

Part of the problem is unemployment, which reached 12.4% in May, one of the highest rates of any U.S. metro area.

Winzer expects the rate to fall gradually and that should mean rents will start climbing again. All told, he forecasts Las Vegas residential investment properties will yield returns that are 4.7% above the national average.

Low home prices and relatively strong rents are expected to make real estate investors in these cities some healthy profits over the next few years.

Las Vegas has long been a Mecca for gamblers, but now it's the go-to place for real estate investors who want to clean up on rental properties.

Nationwide, the opportunities for this kind of investing haven't been this good in years. Not only are home prices way down but interest rates are near all-time lows and rents are climbing.

In May, according to the National Association of Realtors, 19% of home purchases were for investment, up from 17% in 2010.

Nowhere are potential profits better than in Las Vegas, according to a new survey by Local Market Monitor, a North Carolina-based firm that specializes in forecasting real estate prices. Local Market Monitor put together the survey for HomeVestors, a franchise real estate investing company. The survey ranked 316 markets by estimated returns on investment in single-family home rental properties.

"Overall, the highest ratings are in markets where home prices have fallen substantially," said Ingo Winzer, founder of Local Market Monitor. "Home prices in these markets are also below average, so empty homes are easily turned into competitive rental properties."

The cities were ranked by estimated future returns compared with the projected national average return. According to Local Market Monitor's data, for example, investors in Las Vegas who rent out the properties they buy now will have a 4.7% higher return than the 5.3% national average.

The potential for profits has to be high for investors to enter into this risky market: Winzer expects home values to fall another 7% over the next three years.

Here are the top 10 markets ranked highest in investment return.