Low inventory of existing homes said to factor in increase. Las Vegas and Henderson is undergoing
a temporary surge due to low inventory of existing homes and the poor condition of foreclosed homes.

Home Builders Research reported 310 new home sales in February, a 31% increase from 237 a year
ago. The median price fell 2.3 % to $193,900.

"We expect that new home prices could probably rise by 4% to 5% in the next few months."

"I don't expect the sales trend will continue past mid-year because lenders will start to process
foreclosures again and bring them back into the resale supply to compete with new home sales."

Even with the foreclosure slowdown, resale activity continues at a record pace with 4,132 existing home
sales in February. The two month total is up 26% from last year. The median price dropped $10,000
to $105,000.

"People are getting tired of looking at foreclosures.New homes are competively priced with existing homes
and they are usually built better, under warranty,with the latest technology."

But SalesTraq President Larry Murphy questions real estate agents fears that banks have shut off the
foreclosure pipeline. Even though notices of default have dropped dramatically, foreclosues continue
unabated, though they are down from a year ago.

He also questions claims that homes in the $80,000 to the $125,000 range are being snapped up with
multiple offers. "Then why are there currently 4,910 listings on the Henderson MLS and Las Vegas
MLS in that price range?"

He estimates a 5.5 month supply and not the one month supply estimated by others.