Las Vegas hit by housing struggles

Las Vegas property is hurting in several ways including casinos entering foreclosures and housing projects falling through.

Las Vegas is one of the hardest hit areas of the property market in the United States. The city has seen some of the best trends in the housing market until the subprime crisis wiped many clean. Now, a number of problems are easily seen from a look at this market.

Reports issued on Saturday show that two of the larger housing projects in Las Vegas have missed key interest payments within the last few weeks on debts of US $765 million. They are working with their lenders in the hopes of working out a solution. The companies, Inspirada and Kyle Canyon Gateway includes property firms Toll Brothers Inc, KB Home and Lennar Corp, all of which have received default notices this week.

The housing market is not the only place to see the trouble in Las Vegas property either. The developer of the Cosmopolitan Resort Casino has entered the foreclosure process. The development was a US $3.9 billion condo and hotel development that was located on prime real estate on the Las Vegas Strip. The lender, Deutsche Bank AG who is the holder of the senior loan of US $760 million filed the foreclosure paperwork when the developer failed to get new financing during the credit crunch.

As property owners struggle to make payments, real estate agents in Las Vegas are working to develop a sightseeing tour called the "Vegas Foreclosure Express." The tour is four hours long and takes potential investors to see repossessed homes that were lost to foreclosure.

The city does not see any sign of change in the near future, either.