Regardless of the area of Nevada, From Las Vegas to Pahrump, from Henderson to Carson City, from North Las Vegas to Sparks, From Reno to Spring Valley or from Sunrise Manor to Paradise or any other town or city in between Nevada is like all other states has been affected by the global economic meltdown which followed the mortgage meltdown that preceded it. The only difference being that Nevada's economy has been virtually destroyed by the recent recession.
NV foreclosure listings are in no short supply. The state ranks at the very top of all states in the dubious category of most foreclosures per housing unit. The sky rocketing of foreclosures is in large part due to Nevada's narrow but deep economy that focuses on tourism and gaming. Both of these interdependent economies have been especially impacted by the global economic meltdown and the sub-prime mortgage crisis that preceded it. This can be good news for the real estate investor in Nevada.
As companies across the nation have down sized and focused on efficiencies to maximize their profits in order to weather the recession. Corporate travel has also seen a dramatic reduction in the number of people that have made Sin City their destination of choice. For a state that generates 20% of its gross state product on a single industry that industry can not dip without a rippling effect being felt across all segments of the states economy.
Competing for the gaming dollars once monopolized by Nevada are states such as Mississippi which has grown into the enviable position of second in the nation with New Jersey taking up the third spot on a long list of states that have legalized gambling in recent years. Combined with the added competition from other states is the near explosion of online gaming which has the added benefit of requiring no travel. With more options for gambling and less travel overall during what has been referred to as the "Great Recession" the economy of Nevada has slowed to the point that the states unemployment ranks as the highest state wide unemployment in the nation. At a staggering 14.4% unemployment in the state has lead to a greater number of foreclosures and this particular statistic will not help Nevada's economy rapidly improve. This slow growth economy looks to be bad news at first glance but looking at the situation from a different angle the foreclosure investor is provided a great opportunity that should not be overlooked.
Recognizing that gaming and tourism will not be enough to pull Nevada out of it's recession, federal dollars are pouring into the state in order to facilitate the building and expansion of renewable energy projects. Wind and solar are leading the way in the states newest venture into renewable energies. Is there a lesson to be learned from Spain and its green energy failure in creating new jobs? That has yet to be seen.
Regardless of the initiatives taken by the state or the federal government the need for a stable and consistent real estate market is not missed by the residents, real estate investors and all levels of government. This is good news of real estate investors as the banking institutions that are currently holding foreclosures on their books do not want to release them so quickly onto the market that it overwhelms the market causing further downward pressure on the current low prices in the real estate market.
The banks and lending institutions that are currently holding thousands of foreclosures in their inventory have recognized that a slower articulation of foreclosures coming onto the market adds to stabilization of the market and therefore their own portfolio of real estate foreclosures. This controlled foreclosure market is good for the wise real estate investor as it offers the opportunity to buy low with some degree of reassurance that values will not continue to drop.
"The Silver State" actually generates much more revenue from its huge gold deposits and reserves while silver mining makes up only a fraction of the mining industry which has long since been a staple of the states economy. Investors agree that the largest boom that Nevada is likely to see in the next decade will be the housing market. The states population growth is still among the nations strongest as residents of near by states migrate to Nevada and immigrants coming from south of the border continue to seek a better life in Nevada. Legal immigrants and illegal immigrants both need housing and this leads to an increase in demand while prices are at record low levels.
Foreclosures in Las Vegas, Foreclosures in Reno, Foreclosures in Lake Tahoe and foreclosures in Laughlin will lead the market and are the areas that provide the investor the best rate of return with population that offer faster resale or rent out opportunities. Rural areas which are plentiful in Nevada offer fewer opportunities to find qualified buyers or renters. The rural areas provide better opportunities for owner occupant buyers but these farming and ranching communities are also more vulnerable to further pricing decreases as the market the first to drop and the last to recover.
Farming and ranching are still important to the economy of Nevada with high outputs of cattle, sheep as well as the farming of crops to support large herds that make up these industries. In a recent count Nevada had over a half million head of cattle and nearly 100,000 head of sheep. Hundreds of thousands of acres of farmland is dedicated to support the livestock that is raised in Nevada creating thousands of agricultural jobs.
The citizens of Nevada that are working create an environment where the household income ranks sixteenth in the nation. Along with coming economic revolution from being highly gaming and tourism intensive to one of green energy manufacture and innovation Nevada will always have a climate that people in northern states desire which help to rank Nevada as the 18th fastest growing populations. These statistics again lead to the savvy investor to see the opportunity in the state for buying and selling foreclosures in the state.
The global financial meltdown being the primary reason the unemployment figure being as high as it is in a state that has a limited industry focus creates easily determined pockets of potential recovery. The best investment in the state will remain real estate as the population of the state continues to increase even as joblessness continues at its high levels. This population consistency creates a completely new segment of residents that require homes to live in while not being currently able to get their own mortgage.
Until the sub-prime mortgages have been purged through refinance, sale or foreclosure, the number of foreclosures will continue at its current pace. Until such time wise investors in Nevada are looking at foreclosures as the best investment in our time. The real estate investment environment is unlike anything the residents in Nevada have seen before and should not be overlooked by both professional investors and homebuyers new to the foreclosure market.
You should be buying homes that have gone to foreclosure. Buying as many homes below market as your credit can withstand. Why buy in a down market? Buying in a down market instead of trying to time the market on the exact day that the market sees its lowest point will allow smart investors to buy more foreclosed homes and rent them out or selling before buying additional homes and repeating the process. Remember all of the residents that have recently lost their homes will still need a home to live in and provide their family shelter. This new real estate environment represents the greatest boom in Nevada since the Comstock Lode. If you are not in the game, get in the game.