Although concerns about the shadow inventory of foreclosures, underwater homes and a stubbornly high unemployment rate exist, Home Builders Research Friday reported 438 new home sales in June at a median price of $194,490, a 3 percent decrease from a year ago.

"The slight drop is nothing to worry about said Dennis Smith, President. Year over year comparisons have been bouncing up and down for some time. "

"I was a little surprised at the price drop. I think the number of new home sales and prices are actually lagging demand. Looking at permits, I think we will probably see 600 to 650 new home sales in the next few months."

"I think we have settled into a level of activity on new homes that we will see into the rest of the year."

Existing home sales continue to post big monthly numbers with 4,297 recorded resales in June, bringing the six month total to 25,626, a 12 percent increase from a year ago. The median price is up $10,000, up 9.1 percent, at $120,000.

Smith questions what seems to be an "artificially induced" recovery. The biggest factor driving the recovery is a shrinking inventory of homes available for sale, which nobody saw coming a year ago.

According to Core Logic there are still 55,600 homeowners in Las Vegas and Henderson delinquent on their mortgages by 90 days or more, and 61 percent have negative equity in their home. And that doesn't include those who have not yet received a notice of default and are living in their homes without making payments.

That means Las Vegas could see another 75,000 homes in the so called "shadow inventory" that have not yet gone through the foreclosure process.