Like many countries around the world, the real estate market in Spain has been hit hard by the current financial crisis.  It is estimated that there are as many as 1.2 million new homes sitting on the market unsold, many of which have yet to be completed.  In some spots that are more popular for those purchasing vacation homes, including the Costa del Sol region, the market peaked as early as 2004.  Recent months have seen a significant wave of foreclosures, with more expected to follow.

However, the luxury home market in Spain hasn’t seen as dramatic an impact as other segments of the market.  It is estimated that these homes have only dropped 15% to 25% of their value since they hit their peak.  This includes more unusual homes or those that have a unique historical appeal.  It is likely that the prices have held up better because wealthier buyers aren’t as dependant on financing. Many of these sellers are also more likely to be able to hold onto the properties until the market improves.

The price of luxury California real estate continues to drop — not terribly surprising for anyone who follows the market.  However, looking at property that has a history of celebrity ownership can give us a better glimpse into just how the market is doing.  After all, these high-profile sales catch the attention of more than just real estate aficionados.

One recent listing that caught our eye was the return to market of a home that had previously been owned by actress Denise Richards. This contemporary ranch home is located in the exclusive area of Hidden Hills, CA and has been listed for $3,495,000.  Back in May of 2006, Richards purchased the property for $4,000,000.  While she originally listed it higher in an attempt to make a profit, her final sale was a loss at $3,800,000.  That was October of 2007.  Will this property sell for the current asking price of $3,495,000 or has the market fallen even further than the current owner realizes?  We’ll have to wait and see.

In recent years, the real estate markets in Las Vegas and Detroit were as different as night and day.  Las Vegas was the site of a building boom, with luxury housing and commercial property going up at an almost astonishing rate.  By contrast, Detroit was a former center of American industry, now aging into rust.

However, with the recent financial crisis and the collapse of the housing market, Las Vegas and Detroit now have something in common.  They are ranked number one and number two for the most abandoned cities in the United States.  And if you had guessed that Detroit was in the top spot, you’d be wrong.

These rankings, taken from U.S. Census information released in February, showed that Las Vegas had the highest rate of housing and rental vacancies of any city in the country — 4.7% and 16% respectively.  While Detroit has a higher percentage of vacant rentals (almost 20%), the rate of housing vacancies is a little lower at 4%.  Considering the amount of high-end property in Vegas and the dire financial straits that many people are facing, this shouldn’t come as too much of a surprise.  Other exceptionally empty cities include Atlanta, Greensboro, and Dayton in the third, fourth, and fifth spots.