NEW HOME SALES OPTIMISM NOT REACHING BUYERS YET

INCREASING OPTIMISM ON NEW HOME SALES HAS YET TO HIT HOMEBUYERS IN LAS VEGAS

New home sales totaled just 216 in January down from 237 in January of 2011 and the lowest level on record
reported Home Builders Research on Monday.

New home building permits in Las Vegas fell to 222 in January, 10 fewer than a year ago and 158 fewer
than two years ago.

A spokesman said, "what's holding back the new home market is excess inventory in the resale segment."
With an estimated 200,000 homes Las Vegas "under water," builders are reluctant to resume building because
many of the existing homes could go into foreclosure and swamp the market.

Consumers also might not be able to afford move-in costs associated with buying a new home, including
higher down payments and mortgage insurance premiums for those with damaged credit scores.

Another factor is the insecure job market. We are creating jobs in the hospitality sector, but not jobs
that instantly improve consumer demand for housing.

More people are expressing interest in buying a new home, but they are having trouble in qualifying for
financing.

The new home median price is holding steady in Las Vegas, slipping less than 1% from a year ago, at
$207,000.

4,434 existing home sales were reported in January at a median price of $100,000, an 8.3 percent decrease
from a year ago and the lowest price since the 1990s.

A spokesman said, "it could go up next month, but I've got to tell you, I don't see anything acting as a
catalyst for change, especially the junky-funky, hokey-pokey $25 billion settlement with the banks."

That settlement doesn't affect homes financed by Fannie Mae, Freddie Mac and the Federal Housing
Authority which is about 60 percent of the Las Vegas market.

"The banks almost choke when they say the words "principal reduction". The robo-signing is the latest -
and potentially the largest piece in the U.S. housing puzzle."

Another spokesman said, "the settlement might be a step in the right direction, at least to make banks abide
by the rules." Although banks are expected to release more foreclosures later this year, it will probably be
at a pace that will not overwhelm the market.

The gap between new and existing home prices wil stay around $100,000 as foreclosures and short sales
continue to apply downward pricing pressure.

"What new builders continue to offer is flexibility and the opportunity to purchase NOW and move
your family here when you want."