In the boom days of Las Vegas housing, a mere three to five years ago, speculators bought a lot of property and pushed housing prices off the charts.  Along with homeowners, many speculators who did not "flip and run" were caught up in the mortgage mess based on subprime lending, liar loans, and creative financing.

Since then, housing prices have fallen at least 40% and the market is flooded with foreclosed and bank owned homes.  Sales are heating up, as buyers are taking advantage of the good deals.  Once again, major consumers of the bargain homes are investors, often from out of state and often from foreign countries.  Most come with cash and are ready to buy multiple properties.

Between May, 2007 - May, 2008, foreign nationals bought up 150,000 - 190,000 homes in Las Vegas.  Mexicans and Canadians are the largest group represented, but some buyers came from as far away as Britain, China, and the Philippines.   Foreign interest depends on the strength of the dollar; at the moment, the dollar is strengthening against the Canadian dollar, so Canadian sales are falling off.  British sales are increasing given the strength of the pound vs. the U.S. Dollar.  According to Justin Figgins of Rightmore Overseas, UK buyers do 190,000 Internet searches per month for U.S. property.

The investors are taking the homes off the market - sometimes after a bidding war.  Realtors report multiple offers on the same property, from rival investors and potential homeowners.  Since there are over 30,000 vacant homes in Las Vegas, the inventory reduction is a good thing.

There are downsides, too.  To outsiders, the Las Vegas area may look rich and glamorous, but many residents work in area casinos and other tourist attractions for modest wages supplemented by tips.  With home prices down, this group has a chance to become homeowners but are losing out to well-financed foreigners.  Once their bid is accepted, FHA financing makes homeownership for them feasible - but with so much competition, having an offer accepted is the trick.

Las Vegas residents who have lost their homes need affordable rentals in the area.  Assuming that the new pack of investors anticipate renting the properties, will the rents be affordable?  Or will many investors just want to "flip and run," driving prices up again?

Looking to buy in La Vegas?  For the best in Las Vegas housing and the news on short sale and bank owned home opportunities, contact:

N & Y Team

Nebi Adhanom Direct: (702) 277-9922

Yonas Woldu Direct: (702) 236-8997

Fax: 702-898-9738

www.VegasRealProperty.com

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