In Business Las Vegas

Real Estate and Development

LV-area ZIP codes flush with foreclosure filings

By Brian Wargo / Staff Writer

Nevada had held the top spot in the nation for foreclosures, and now the Las Vegas Valley is taking center stage in the national spotlight of the problem.

The valley has long been ranked in the top five nationally in the rate of foreclosure filings.

In December the valley had seven of the top 10 ZIP codes in the nation in foreclosure filings and 16 of the top 20, according to a report by RealtyTrac, a California firm that tracks foreclosures, and CNNMoney.com.

A year ago, Detroit and Cleveland had some of the highest foreclosure filings.

RealtyTrac blames the growing problem on a large number of subprime mortgages coming due. Subprime loans are for buyers who didn't have the credit worthiness for a prime loan. Many borrowers used adjustable-rate mortgages to afford homes because prices have risen steeply in recent years. When prices fell, many homeowners could not refinance their loans.

The 89031 ZIP code in North Las Vegas had the highest number of filings - 741 - in December. That included 368 default notices, 285 auction notices and 88 repossessions.

The others and their total filings are:

2. 89131 in Las Vegas: 665.

3. 89148 in Las Vegas: 614.

4. 89108 in Las Vegas: 573.

5. 89052 in Henderson: 484.

6. 89139 in Las Vegas: 476.

7. 89129 in Las Vegas: 473.

10. 89123 in Las Vegas: 448.

Housing expert weighs in: National housing expert John Burns says there is further evidence the U.S. could be in a recession. He says as if the housing market isn't enough of a drag on the economy, businesses are curtailing their spending as well. Not only have manufacturers said their budgets are being cut, but service-sector businesses are shrinking as well, Burns says.

As for the housing market, Burns says the good news is that falling interest rates will help more qualified buyers finance their way out of problems.

The existing home market remains weak with few signs of any improvement, and he gave it a grade of a D. The new home market got an F from Burns because sales and prices continue to decline.

Las Vegas the place to buy: Entrepreneur.com listed Las Vegas as one of the top four places to buy an existing home as an investment. The others are Austin, Texas, and surrounding cities; Mission Viejo, Calif.; and Palm Beach, Fla.

When it comes to Las Vegas, the online magazine said the city has been hit hard by investors who watched their home values disappear and then left those homes empty. Las Vegas is high on the national list of foreclosures, but it has a strong job market, it reported.

"Las Vegas experienced a 12 percent increase in population, partly driven by retirees looking for Sunbelt states to move to," the publication said. "Coupled with low prices, we could see inventories reduced here, which would also stabilize prices. Be careful what you buy, but (we) like it."

The places to avoid are Detroit, Miami, and Riverside and San Bernardino counties in California.

In other news:

Registration is under way for the housing outlook presentation at the 2008 Southern Nevada Housing Day scheduled for March 26 at the Las Vegas Convention Center. The presentation, titled, "What to Expect in 2008 & Beyond," will feature speakers David Seiders, chief economist of the National Association of Home Builders; Dennis Smith, president of Home Builders Research; and Nicki Joy, principal of Nicki Joy & Associates, a real estate motivational speaker. The event is sponsored by the Southern Nevada Home Builders Association and Southwest Gas Corp.

Las Vegas resident John Restrepo, principal of Restrepo Consulting, has been appointed by Gov. Jim Gibbons to the Nevada Economic Forum, which is responsible for providing forecasts of the state's general fund revenue for each budget period. Restrepo is president of the Las Vegas chapter of the National Association of Industrial and Office Properties. Gibbons also appointed Cathy Cantoro of Las Vegas, senior vice president and treasurer of MGM Mirage.

Jason Kuckler, former Las Vegas division manager of Panattoni Development, has started his own venture, PAR Development Inc. Kuckler will serve as president of the company that specializes in developing industrial projects in the Las Vegas Valley. His first project, Post Park, is a $31 million, 10-acre industrial project in southwest Las Vegas. The 175,000-square-feet industrial park is slated to break ground in this year's fourth quarter. Silver State Bank provided the financing, and Panattoni Construction is the general contractor. Doherty Industrial Group of Colliers International is the sales team, and Tectonics Design Group is the architect.

Cashman Equipment Co. has dedicated a new Habitat for Humanity home on Gregory Street in North Las Vegas. Cashman employees assisted in framing the home, and the company contributed toward the construction of the home.

Brian Wargo covers real estate and development for In Business Las Vegas and its sister publication, the Las Vegas Sun. He can be reached at (702) 259-4011 or by e-mail at wargo@lasvegassun.com.

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