LAS VEGAS SALES RISE 10.9 PERCENT IN JANUARY WITH OVER 58,000 IN 2011

Nationwide, existing home sales are at their highest level since May 2010. More first time buyers are making
purchases. The supply of homes last month fell to it's lowest point in 7 years which could push home prices
higher.

While sales are well below the 6 million that economists equate with a healthy market, the recent gains suggest that more sales are coming. "The trend is clearly upward,"said a spokesman at High Frequency Economics.

The National Association of Realtors estimated an increase to 4.57 annual resales, below the 6 million deemed a "healthy market."

First time buyers were 33 percent of the resale closings, below the 40 percent, which signals a healthy market.

Las Vegas resale inventory on the Multiple Listing Service decreased to 8,997 in January, compared with
10,540 in December, down 41% from a year ago.

One concern is that the Vegas housing market is still saturated with homes at risk of foreclosure which lowers broader home prices. Those increased to make up 35% of sales nationwide and close to 75% in Las Vegas, including short sales.

Foreclosures continue unabated in Vegas, with more than 100,000 homes lost in the last 5 years, and another 100,000 could easily go into foreclosure in the next 5 years.

Three out of four homes for sale are vacant, a symptom of a greater problem that has depressed home prices to their lowest level in 25 years. "What will happen to the 250,000 homeowners who are underwater on their mortgages, owing more than their home is worth?"

Mortgage rates have never been lower and optimism has increased because hiring has picked up. More jobs are critical to a housing rebound.

Analysts caution that the damage from the housing bust is deep and the industry is years away from full recovery. Since the bubble burst, sales have slumped under the weight of foreclosures, tighter credit and falling prices.