Implications: May data for the Las Vegas housing market suggests that recovery is underway for the resale market. Unfortunately, the data clearly points out that recovery does not yet extend into the new construction arena.
Analysis: May’s existing home sales total of 2,606 was the highest since March 2007. May was the second consecutive month in which sales exceeded previous year’s totals. It was also the fourth consecutive month in which existing home sales totals increased.
----->It is now probable that 2008 existing home sales will easily eclipse last year's weak results.
New home sales are still in the doldrums. Three of the first five months of 2008 have seen sales of 900 or less new homes in Las Vegas. The 868 total in May is a level not seen in the last decade.
The difference in sales rates was clearly visible in pricing for each product category.
The median price of a resale home slipped just $3,000 to $225,000. Considering that about half of the sales in this category came from purchases of foreclosures, that is a strong showing. On the other hand, the median price of all new homes sold in the market fell more than $21,000 from April to $269,990. The median price of new single family homes and condominiums (not including vertical product) slipped $5,000 from April to $249,990.
Inventory levels for resale homes fell for the ninth consecutive month. Despite a record 2,358 foreclosures, existing home inventory fell to 20,573 – the lowest total since May 2006 (the first month of the current downturn). At current sales levels, the total represents about 10 months of inventory. A so-called “normal” market generally has six to nine months of inventory.
The number of new home permits in 2008 could be less than half of those drawn last year. Although the 621 new home permits in May were the highest monthly total in 2008, the total was 61.1% below the same month in last year. Nearly 13,000 new home permits were drawn last year. At the current rate of production, it is unlikely that the market will experience more than 7,000 this year.
That could be one of the underlying reasons why, for the 10th consecutive month, the number of active new home subdivisions has declined. With a total of 474 active new home communities, the market now features about 100 less subdivisions than at its peak last July.
May showed marked improvement in one or two sectors of the Las Vegas housing market.
Against a backdrop of surging oil prices, rapidly rising inflationary pressures and some deterioration in the employment picture, the question is:
Is the housing market in recovery or is the recovery limited to only one or two of its components?
The evidence suggests the recovery has begun. 
Far Too Optimistic View From Florida's Housing "Experts(?)"