IS THE BOTTOM IN FOR THE LAS VEGAS HOUSING MARKET?

LAS VEGAS HOUSING MARKET -- THE BOTTOM IN SIGHT YET?

Las Vegas home values drop for second straight year, losing 11 percent of value on average.

Home values dropped in all but 3 of the valley's 56 zip codes last year. That's coming off a 6 percent decline
in 2010, compared with the 23 percent decrease in 2009.

Overall, Las Vegas home prices have fallen more than 50 percent from their peak and have yet to find the
proverbial bottom. They could easily go down another 10 percent, which means a slip below $100,000.

A spokesman said, " I'm curious to see what the $25 billion settlement accomplishes. " The banks are saying,
"we'll give you the $25 billion just to see this go away."

"Another appraiser says, "there are good buys and bad buys in every zip code. Las Vegas is composed of some
100 sub-markets that are pretty erratic when it comes to home valuation. Depreciation depends on the amount
of distressed inventory in the neighborhood."

One zip code that showed appreciation last year was 89146, around Sahara and Jones Blvd., a mature
neighborhood with 20-30 year old homes on half-acrelots. The median price rose 5.3 percent in 2011.

Master planned communities like Mountain's Edge and Providence, home prices fell 8 and 5.6 respectively.
That's where the bulk of new homes built in the last few years of the boom took place and where there are lots
of foreclosures.

About half of the buyers in Las Vegas are investors. If banks continue to tighten the spigot on foreclosures,
investors won't be able to pick up bargains and they might stop buying.

The entire market is not in decline as some appraisals
are coming in at list price and higher in some areas.

One broker said he has people across the country buying second homes. "This is the deal of the century."

Some real estate experts point to artificially depressed appraisals for contributing to Las Vegas declining home
prices.