Las Vegas, NV – January 28, 2011 – (RealEstateRama) — Who says that history doesn’t repeat itself? In September 1929, the Secretary of the Treasury, Andrew W. Mellon made the following announcement, “There is no cause to worry. The high tide of prosperity will continue.” One month later, Wall Street experienced the most devastating stock market crash in the history of the United States. The crash signaled the beginning of the 12 year Great Depression that affected all Western industrialized countries. Eighty years later, in September 2009, Federal Reserve Chairman, Ben Bernanke proudly announced that “The Recession is over.” Since that announcement, the Nevada housing market has hit rock bottom as Nevada leads the nation in foreclosures and has the highest unemployment in the country.
Don’t look to the media for encouragement. Each day, newspapers report “doom and gloom” for the Nevada housing market. (Las Vegas Review Journal Business Section, January 21, 2011, “Home prices may fall further.”) The question Nevadans want to know is, “When will this end” and “How can we fix Nevada’s economy?” The answer is simple. We need to bring investors back to Las Vegas.
Many investors have given up on Nevada, and can you blame them? The Nevada housing market has crashed, and real estate investors have lost a ton of money, however, sometimes the best way to find answers to today’s problems is to look at the past for solutions. After the stock market crashed in 1929, many investors lost their fortunes. Some even took their own lives; however, on October 31, 1929 (only two days after Black Tuesday) an investor named John D. Rockefeller bought millions of shares of stock. Other men, with names like Andrew Carnegie, J. Paul Getty and J.P Morgan also bought significant amounts of stock after the 1929 crash. While average Americans were running to their banks to withdraw their savings, (cursing the New York Stock Exchange) some of America’s brightest minds and most savvy investors seized the moment and made an investment in America (making a fortune in the process.)
Were these American businessmen (who were already quite wealthy) taking advantage of a bad situation? Probably, however, it is hard to argue the fact that their investment into the post Black Tuesday stock market helped our nation’s economy in addition to making these men wealthier in the process. Isn’t investing in America how Capitalism is supposed to work? Buying low and selling high are how fortunes are made.
According to market experts, Las Vegas home prices have dropped as much as 70%. There has never been a better time to buy. It’s time for investors to come back to Nevada. Home prices may continue to fall, however, how much lower can they drop? Investing in Vegas is a long term investment. The days of “flipping” properties are long gone. There are billions of dollars invested in the Las Vegas Strip. The economy will eventually rebound. This is a fact. Each time an investor buys a home in Nevada, it stimulates our economy. A home sale benefits more than just a Realtor’s pocketbook. When a first time homebuyer purchases a new home, or aretired couple relocates to Las Vegas, jobs are created. Appraisers, loan officers, Realtors, escrow officers, moving men and home inspectors get paid. Locksmiths and Gardners find work. Pool men have pools to maintain. Power companies have meters to read. Local newspaper subscriptions are purchased. Plants are bought fo r backyards and endless trips are made to Home Depot and Lowes. Walls get painted and carpet is replaced. Home ownership is the cornerstone of our economy. America’s strength starts at home, and the key to rebuilding Nevada is to bring back the investors. Many Las Vegas homeowners who were enticed by “interest only” loans and “adjustable rate mortgages” have either lost their home or are in the process of losing it. They need a home to rent. These are good people who obtained bad financing. A credit score is no longer a good indicator of fiscal responsibility. If your teaser rate resulted in a mortgage payment of $1400, but after 2-3 years, your ARM adjusted increasing your monthly payment to $3000, then not everybody can afford to pay this. Does this make the homeowner irresponsible, or did they simply get talked into a bad loan? Maybe they can still pay the $1400 payment without issue. Would this person (assuming they are still employed) not make an i deal tenant? There are thousands of Nevada families who are unable to refinance their adjustable rate mortgages due to the depreciation of their home.
According to Bill Myers, Nevada Short Sale Expert and Owner of The Myers Team with Century 21 MoneyWorld, “Investors should look into buying short sale homes and avoid bank owned properties; which have already been foreclosed upon.” Myers said, “When you buy a bank owned home, you are purchasing a home where a bank has tossed a family out onto the street. When you buy a short sale home, you are helping a family avoid foreclosure, save their credit, and move on with their lives.” A recent report released by IMS Advanced Realty Data Services on January 10, 2011
named The Myers Team the #1 Short Sale Real Estate Team in Nevada. Number one status was determined by actual short sale listings closed in 2010.
For additional Nevada Short Sale Information, please visit http://www.nevadashortsaleinfo.com