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.

THE HUNT IS ONGOING TO BRING INTERNATIONAL VISITORS TO LAS VEGAS

The Nevada Commission on Tourism expanded its international marketing efforts in mid-February
to include outreach to France, Brazil, Australia and South Korea.

Already the Commission has people on the ground in Mexico, Canada, the United Kingdom, continental
Europe and China.

The Commission is contracting with representatives who already are working with the Las Vegas Convention
and Visitors Authority, which contracts with 18 overseas offices to help bring international tourists to the city.

International tourism is seen as a growth area because the average international traveler spends about $1,011 per stay and remains in Vegas longer than four days each visit.

Compare that with domestic visitors who average $645 per visit and stay about 3 days. In 2010, 18 percent of
the 37.3 million visitors, some 6.7 million people were international visitors.

A spokesman said, "marketing efforts vary from country to country based on the potential for travel from each and on airline connectivity.

Through its international offices, the travel board is able to promote Las Vegas at major trade shows and travel
industry events overseas.

The Authority he,as organizations in Canada, Mexico and the United Kingdom, South Korea, Japan, Australia,
Germany, Spain, Italy, Belgium, Scandinavia and Ireland.

The authorty's total budget for its international efforts is about $6.5 million.

SHORT SALES BRING IN 24% GREATER RETURNS THAN FORECLOSURES

The real estate pros at New England based McGeough Lanacchia Realty have been proponents of Short Sales for quite some time, insisting that everyone gains when a Short Sale is achieved as opposed to a foreclosure.

 On average, a home sold through a Short Sale brings a 24% return rather than through a foreclosure.

 A spokesman said, "that banks are losing an average of $43,000 for every foreclosure sale as compared towhat they would make through a Short Sale."

 The Realty firm reviewed prices for Short Sale and foreclosure properties in 2010 and 2011 in Boston,Phoenix, Southern California and Southwest Florida.

 "While banks often offer incentives to homeowners who pursue a short sale, more needs to be done topromote short sales that are started through the Home Affordable Foreclosure Alternatives program.

 Fannie Mae and Freddie Mac also need to do more to promote Short Sales and make it easier fordistressed homeowners to do a short sales and avoid a foreclosure."

FOREIGN TRAVELERS TO LAS VEGAS PROP UP McCARRAN AIRPORT NUMBERS

Domestic passenger counts sputtered in January but a big bump in international arrivals and Las Vegas based Allegiant Airs 10.3 increase in passengers for the month kept economic momentum alive at McCarran airport.

Officials reported that McCarran drew 3.2 million passengers in January, a 0.3 percent
increase over the same month in 2011.

Most domestic airlines reported declines for the month, in part because of the seasonal
flight changes that resulted in fewer flights to Las Vegas.

Market leader Southwest Airlines flew 1.2 million passengers to the city, a 4.9 percent
decline from January 2011, but had 5.5 percent fewer flights.

U.S. Airways, the number 5 carrier at the airport, had 159,155 passengers, a 21.6 percent
decline, with 39.9 percent fewer flights.

McCarran reported 219,254 international passengers for the month, a 21.5 percent increase
over January 2011, in part due to the staging of the largest Consumer Electronics show in history
January 10-13.

Six international carriers reported double-digit percent increases for the month. In addition,
Mexican carrier Volaris was new to the market in March 2011.

While Southwest and legacy carriers Delta, American, United and U.S. had declines, Jet Blue and Virgin
America had double-digit percent increases, and last years fastest growing airline Spirit, was up 294.2 percent
over 2011 to 120,861 passengers. 

TECH-EDGED STATIONERY DESIGNER STORKIE EXPANDS TO LAS VEGAS BRINGING JOBS AND NEW PRODUCTS

"We want to use Las Vegas as a hotbed for new technology and new products", said a spokesman
for the firm.

Since it's 1990 inception as a catalog-based, baby related stationery company, Storkie has grown into
a graphic design company that uses web design tools to customize every element of it's products, which
now includes wedding invitations, graduation announcements and holiday cards.

Want your cartoon bride to have red hair instead of black? With a click of a mouse, Storkie's cards
look any way you want them to.

Storkie processes hundreds of orders daily, which are printed at a facility in Idaho. That growth prompted
the company to expand as they needed a customer service presence in the West.

The company began eyeing Las Vegas last year and a local Realtor referred Storkie to the Nevada
Development Authority for help navigating the the expansion process. Storkie retained a wing in
an office building near UNLV for it's main and additional offices.

"There's been a lot of cooperation in the Las Vegas community to help bring tech-based firms to Vegas
to help diversify the economy," said a Storkie spokesman.

Storkie got its start when Debbie's husband Shlomi, a computer engineer built a stationary software program
for a local store that went out of business before he could finish the project.

Debbie decided to take the program and start her own stationery company in their Fort Lauderdale garage.
Now the company has two offices and a printing facility.

Storkie plans to create 30 new jobs in the next 2 years, most of which are in graphic design and customer service.

The Nevada Development Authority said that Storkie accepted training assistance from the state which offers
up to $1,000 per employee for job training.

Authority President Hollingsworth said he expects Storkie to draw interest to Nevada from other companies looking to expand or relocate.

"This company has quite a following nationally. Other companies may ask, why are they now in Las Vegas?"
If they are leaders in the industry , why aren't we there?"

Storkie at a launch party was expected to unveil it's latest product, an augmented reality application called Storkie Hidden Dimension, which allows Android and Apple gadgets and camera equipped computers to view their cards in 3-D.

THE CLOCK IS RUNNING OUT FOR THE MORTAGAGE DEBT FORGIVENESS ACT!

Given the huge public and private resources now being devoted to helping financially distressed homeowners,including the recently announced $25 billion settlement from the 5 largest banks, you might assume that a key Federal tax law benefit underpinning these efforts would be a shoo-in for renewal. But it's not.

The Mortgage Forgiveness Debt Relief act is set to expire in 10 months, and there are early indications on Capitol Hill that it might not make the cut. The law enacted in 2007, allows homeowners who have received loan modifications,short sales or foreclosures to avoid income taxation on the amount forgiven.

Loss of that tax help would endanger huge numbers of distressed mortgage arrangements in the months ahead.

Yet, election year politics and a Congress loaded down with tax and budget issues could doom renewal of the
act and put large numbers of loan modification participants deeply in the hole.

Republican strategists say the cost of continuing the program --$2.7 billion over 2 years, is substantial enough to catch the eye of budget deficit hawks. Some tea party members consider this to be a tax code "bailout"

A spokesman said, "it's going to be an uphill fight to get an extension of the act through Congress."

Real Estate and housing groups are gearing up campaigns to save the act before the November elections. Some strategists put an extension of the act at 50-50.

Under the present law, a homeowner can avoid taxation on forgiven mortgage amounts up to $2 million for married taxpayers and $1 million for single ones.

Picture this scenario -- After a long negotiation with your lenders, you pull together a short sale package calling for the bank to forgive $100,000. But the deal doesn't go into closing until after the December 31 expiration date. Now your house is gone, your credit is shot, you are looking for a place to rent, and the IRS demands taxes on your phantom"gain" on the $100,000 on the sale.

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."

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.

NEVADA FORECLOSURE STARTS INCREASING BUT STILL BELOW THE NUMBERS FROM A YEAR AGO

In Clark County, there were 1,115 notices of default,filed in January, up 13.5 percent from the prior month,but a dramatic 80% decrease from 5,695 in January 2011, an online service reported.

A total of 1,345 homes went back to bank in January, a 44.6 percent increase from the previous month and a 40.4 percent decrease from the same month a year ago.

Nevada still posted the nation's highest foreclosure rate for the 61st month in a row.

Most economists associate high foreclosure rates with high unemployment, but that is not the case in Nevada, said a spokesman for the online service.

"Clearly, unemployment is not helping the foreclosure crisis, which is about prices that were unsustainable.I think the banks just don't want to admit that stupid lending practices are the primary driver of foreclosures. We will be clearing that mess up whether unemploymentis or low."

The decline in new foreclosures is the result of a recent Nevada law to force lenders to prove ownership.

With a foreclosure time frame of more than 8 months,there is little chance of a predicted wave of foreclosures
this year.

Another online service disagrees -- "the 25 billion dollar settlement just enacted will accelerate the foreclosures this year, and it will accelerate the process of lenders catching up on the backlog of foreclosures."

"We project that foreclosures will rise 25 percent this year to one million homes. Last year, lenders took back 804,000 homes."

Real-estate owned or bank-owned, inventory has decreased 50% from a year ago. That is bringing multiple offers on foreclosures priced under $250,000.

All told, 210,941 U.S. homes received a default notice, were scheduled for auction, or were repossessed by a lender in January. The foreclosure rate translates to one in every 624 U.S. households.

A credit rating agency also anticipates foreclosures will rise nationally this year but not right away, as it will take some time for lenders to make sure they are complying with the rules of the settlement.

HOME BUILDERS OPTIMISTIC ABOUT RISING NEW HOME SALES IN 2012

The National Association of Home Builders/Wells Fargo said its Builder Sentiment index rose for a fifth straight month in February to 29, up from 25 in January, to its highest level since May 2007.

Builders have generally become more hopeful about current sales six months out, and foot traffic, the report shows.

Even with the brighter outlook, the industry has a long way to go. Any reading below 50 shows a negative sentiment about the housing market.

The index hasn't reached 50 since April 2006, the peak of the housing boom. A key reason home builders are more optimistic is that they are seeing
more people express interest in buying a home.

Sales of previously occupied homes rose in December for a third straight month. Mortgage rates have never been lower. However, home prices continue to fall, and
builders continue to slash prices to stay competitive.

Last year was the worst for new home sales since 1963. Las Vegas based Home Builders Research reported 3,894 new home sales in 2011, down from 39,000 in
2005 and 23,000 in 2001.

New homes make up a small portion of housing sales.Builders are struggling to compete with foreclosures which have forced down prices of previously occupied
homes. And many people are finding it harder to qualify for loans or meet higher down payments.

Low appraisals are scuttling some deals after contracts have been signed. One appraiser said, "one thing we know about Vegas, is that values are declining. The
key to our recovery is getting rid of our inventory."

"Let all those foreclosures work through the system.
Availability of credit is another big deal."

Those who are in a position to buy new homes are benefiting from lower prices and low interest rates. The average rate on a 30 year fixed mortgage is at
record lows of below 4 percent. Yet, these factors have done little to boost sales.

Over half of homeowners in Southern Nevada are underwater and are stuck in their homes unless they try a short sales or default on their mortgage.