Las Vegas Nevada Real Estate

When I think of real estate today I think of Bear Sterns, I think of Lehman Bros. and I think of Merrill Lynch. All these companies had sizable investment in the real estate sector. The US property market, at one time, was one of the fastest growing property markets in the world. There was double digit growth in the prices of the property. The sellers were dictating terms of sale and the market was looking only one way and hat is up, up and up. Anybody who spoke about a price correction or caution in the market was considered to a pessimist. Financial institutions were helping the boom by lending huge money to people who wanted to buy property but did not have finances to do so. Also investors in real estate were very happy because they were seeing double digit growth in the property investments that they made. The signs of problem started when the prices of property began to fall. There was default in payment to banks by the mortgage borrowers as the amount they had borrowed was much higher than the prices of property that they were holding. Banks and financial institutions were left holding properties. The prices of these properties were falling by the day, which were affecting the balance sheet of many banks and financial institutions. The end result of all this was that many banks ended up being bankrupt. (more…)