For Isaac Toussie, any discussion of Nevada mortgages involves a lot of sympathy for all the foreclosures in the state.  In fact, Nevada leads the country with places like Florida and Arizona in the number of repossessed homes.  Essentially, owners wound up with mortgages worth a whole lot more than their very houses.  People have suggested that These mortgages had been packaged as investment vehicles and eagerly bought up as such, which loans were quickly sold at a profit to institutional investors who did not exercise due diligence in analyzing all possible consequences.

Because stocks were still down several months after the September 11, 2001 tragedy, a large portion of investment funds were directed into real estate instead.  Yet operating expense remained steady, and the result was that property values increased tremendously.  As more and more people found out about the unique real estate opportunities available, prices were driven up sky-high, and speculators flooded the residential market, creating a classic economic bubble in which a hot commodity was way overvalued and the market ripe for a correction.  Up to twenty-three percent of all houses bought in 2004 were investor-owned, according to the conclusions of a National Association of Realtors study at the time.

Unfortunately, Nevada has a very definite oversupply of residential real estate right now, being among those leading the nation in the number of foreclosures occurring.  Enormous amounts of private property were being developed in the expectation that the housing boom of the time could only continue, and even expand.  Unfortunately, very few foresaw the consequences of misguided policies from government and lax oversight by the same.  In a state with very few industries to its credit, commercial realty is necessarily tied to what happens on the residential side of the business, and while not undergoing the turmoil being experienced by the residential market, it is definitely suffering right along.

Nevada it seems more than other states, is going to need significant time to heal its property markets. Oversupply, and a lack of fundamental demand forces merge to create this effect in my view says Isaac Toussie.  Banking needs to loosen, unemployment needs to reverse itself and consumer confidence needs a shot in the arm, states Isaac Toussie.

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