Las Vegas Foreclosure Frenzy Continues

Another gauge analysts watch indicates a similar drop off the peak: The median paid per square foot for resale detached houses fell to $78 in April, down 3.7% from March and down 37.6% from a year ago. It was 59.0% below the $190 peak reached in June 2006.

Across the West, year-over-year declines in the median sale price - the point where half of the homes sold for more and half for less - have sometimes overstated the extent to which the value of the typical home has fallen. It's because the median is being tugged lower not just by price depreciation but by shifts in the types of homes selling. For example, more of today's sales involve foreclosures, which tend to sell at a discount and be concentrated in more affordable areas. Also, the August 2007 credit crunch made larger "jumbo" mortgages more expensive and harder to obtain, which has led to sluggish sales - in some cases the lowest in many years - in higher-priced communities. (A dropoff in high-end sales can pull down the median.)

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