When the recession hit Las Vegas, it hit faster and harder, and lasted longer, than anyone expected. In fact, it is still going. The human cost in our community-disrupted families, uprooted children, and caused divorces, stress, illness, etc.-has been much higher than the financial cost, in my opinion.
The first lesson we learned is when a real estate bubble bursts, the market may severely overcorrect and home values may drop well below the prior trend line. For example, in Las Vegas, our bubble burst in 2006, and local real estate values have now over-corrected to below-2000 levels.
The second lesson we learned is 13% net worth is not too much. That is where we were at year end 2007, at approximately $105 million in net worth. Today we have net worth of approximately $64 million, or slightly more than 9% of total assets.
Lesson three: we have learned to count our blessings every day.
President and CEO
One Nevada CU, Las Vegas