Housing Comeback for Las Vegas?

las vegas housing
las vegas housing

By Les Christie

NEW YORK -- Las Vegas has suffered through the housing bust like few others places and still has further to fall. But these days many real estate investors and homebuyers are betting that it's poised to stage a comeback.

Sin City's metro area led the nation in mortgage defaults for 22 straight months through August and home prices plunged a whopping 60 percent from their 2006 peak, according to RealtyTrac. And prices will continue to drop. Financial analytics company, Fiserv, projects home prices in Las Vegas could fall another 16 percent by next June.

But to investors and homebuilders, there are enough positive signs to start betting on Vegas now.

Home sales, especially of bank repossessions, have picked up significantly. Nearly 36,000 homes have been sold so far this year through Sept. 30, an 11 percent increase compared with the same period in 2010, according to Lawrence Yun, chief economist for the National Association of Realtors.