Southern Nevada is seeing a notable increase in mortgage defaults, with 1,290 notices of default filed in Clark County during the first half of the year, marking a 28% rise compared to the same period last year, as reported by UNLV’s Lied Center for Real Estate. Single-family homes accounted for the majority of these defaults, followed by townhomes and condos. June alone saw nearly 200 default notices, a 32% increase from the previous year.
A notice of default typically indicates the beginning of the foreclosure process after a homeowner falls behind on mortgage payments, though there are opportunities to avoid foreclosure through negotiations with lenders or debt repayment.
Nicholas Irwin, research director at the Lied Center, expressed concern over this trend, noting its potential implications given the local economic challenges. Las Vegas is experiencing a higher unemployment rate than the national average, alongside a downturn in tourism, the cornerstone of the region’s economy.
The housing market is also under pressure, with sales declining due to high property prices and elevated mortgage rates, making home ownership less accessible. Nationally, economic uncertainty persists, exacerbated by trade tensions under President Donald Trump’s administration. The impact of tariffs may become clearer in the latter half of 2025, potentially affecting prices for both businesses and consumers. Irwin plans to closely monitor economic indicators and consumer sentiment to assess the tariffs’ effects.