Economist Says Nevada Mortgage Crisis Could Turn Around

An economist has told lawmakers that Nevada's economy should be so strong by 2009 that a housing shortage may be the big concern rather than the current mortgage crisis and heavy surplus of homes for sale.

While Nevada now has the highest home loan foreclosure rate in the nation, Jeremy Aguero of Las Vegas-based Applied Analysis told a legislative panel studying the state's mortgage problems that another economic boom will have started in the state by then.

With some $36 billion in megaresort construction occurring in Las Vegas in the next few years, Aguero said the people holding new
jobs created by the building activity will buy up homes now available on the market and probably need more.

While a turnaround is on the horizon, Aguero and other economists and experts told the legislators that Nevada's problems related to foreclosures and overbuilding are likely to get worse during 2008.