From 2004 through 2006 Las Vegas investors and residents took out approximately 150,000 high risk loans according to the Wall Street Journal.

As previously reported Las Vegas had an investor ratio of approximately 30% during that time. This translates into 45,000 investor loans and 109,000 primary and second resident mortgages.

Subpime loans amounted to approximately 23% of the total loans that were made during this 3 year period.

Most of these loans came with a 2 to 3 year reset period which translates into increased foreclosures in 2008 and diminishing through 2009.  

A great majority of the subprime loans will not reach the foreclosure auction block but if 25% due forclose that will result in approximately 37,000 homes needing to be resold with much tighter financing requirements.

The bright spot in all this is that in 2009 Las Vegas is going to have a shortage of employable workers and the 6,000 new residents it currently is welcoming may further balloon as people across the country learn about its need for workers.

My belief is that the last quarter of 2009 and first quarter of 2010 will once again see the market change and once again become a Sellers market.