Continuous foreclosures may keep Realtors ' shelves stocked with houses in Las Vegas, but there are bidding wars on some homes and condos with foreign investors emerging victorious.
When the dollar is weak in world market and homes in the U.S. are plentiful, it's not surprising that property in the United States is a hot commodity among foreigners. Las Vegas and many other cities are seeing an influx of buyers from Canada, the UK, Spain, the Middle East, and the Far East. The buyers often come with cash (a good thing since they might have trouble being financed by many U.S. lenders) and a shopping list of properties.
According to David Michonski, former CEO of Coldwell Bankers International Realty, foreigners looking for a single family houses as personal homes or investment property are flocking here. "America is on sale!"and value-minded foreigner come here for cheap housing, not politically unstable third world countries.
This is particularly true in Las Vegas, where the median housing price is currently about $145,000. Many of these homes previously sold for $350,000-400,000. New homes are running $219,000.
Las Vegas is particularly attractive to Canadians. Canadians view U.S. property as affordable, though they have traditionally preferred Phoenix over Las Vegas due to cheaper housing prices and better weather. What tips the scales of many buyers toward Vegas for many Canadians who seek second homes is the casinos.
The fire sale prices on some homes and condos encourage mass buying for investment. These investors believe the Las Vegas housing market has bottomed out and expect the housing market to rebound in five to ten years. At a time when savings accounts are paying 3 or 4 percent in Canada, investors can yield 8-18% by renting out their bargain homes until it time to sell them.
This competition is taking some affordable housing out of the hands of Las Vegas homeowners who seek affordable housing. Given the scope of the housing problem in Las Vegas, it's hard to complain,
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N & Y Team
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