In Business Las Vegas reports from Nevada. "While major homebuilders relinquish options and pull out of escrow on properties because of a soft new housing market, builders are already plotting strategies for where the market is heading next, according to Sullivan Real Estate Advisors. Because of the high cost of land, builders have shied away from making major purchases knowing that prices are already a factor in keeping people out of the new housing market, Ken Perlman said."

"Las Vegas lacks the ocean and water views to make it a prominent high-rise condo market such as cities like Miami, Seattle, Chicago and Vancouver, real estate research consultant John Restrepo said. Restrepo noted that the Southern Nevada luxury condo market has 4,288 existing and prospective units in 14 projects that have gone vertical, which amounts to 6.5 percent of the 66,075 units in 119 projects that are under construction and planned."

"Some 38 percent of the projects that have gone vertical are located in the resort corridor, and 85 percent have been purchased by second-home buyers, investors and speculators, he said."

"Housing market researcher Dennis Smith continues to say he expects a home price decline in the valley, possibly 10 percent. Smith said there will be some 'fairly significant price cuts' in the existing home market in order to move some inventory; he said new home prices will fall as well."

"'As the market continues to cool and find the bottom, many of the owners of homes listed for sale have been unwilling to cut their prices, causing some vacant homes to sit on the market for months,' Smith said."

"Real estate tracker Steve Bottfeld takes aim at those who believe housing prices in the Las Vegas Valley are severely overpriced, calling such claims of national experts 'poppycock and balderdash.' He argued that the median price of an existing home at $329,897 is nearly 13 percent ahead of August 2005 at a time of all-time inventory and cooling demand."

"'Under ordinary circumstances, rising prices in the face of those two factors would not make economic sense, but this is Las Vegas and there is always more than meets the eye,' Bottfeld said."

From KVBC TV . "The American dream of owning a new home turned into a nightmare for one Las Vegas couple. The couple is suing the developer of Spanish View Tower Homes. They say the developer has missed construction deadlines and now they want their money back."

"'This project, the money, was put up, the construction was begun, the construction stopped and now there's a lot of people that might not see their money back,' says attorney Terry Coffing. Coffing filed a lawsuit on behalf of a couple that paid $246,000 to buy one of Spanish View's 444 luxury units."

"Analyst Jeremy Aguero says Spanish View is one of 135 high rise condo projects in development in Las Vegas. 'In the third quarter of 2003, we're looking at 2500 existing and proposed projects.' He says the market will not support that many new condos and predicts 70 percent of those projects will never get off the ground."

The Arizona Daily Sun. "When Shelly Denny of Phoenix put one of the two townhouses she owns in Boulder Pointe on the market three weeks ago, she knew it would take a while for it to sell. Denny is asking $309,000 for the 1,440 square-foot, three-bedroom, 21/2-bath townhome."

"But with 237 townhouses and condos listed for sale in greater Flagstaff and sales slowing down, Denny could be in for a longer wait than she thought. 'I believe there is a year's worth of inventory on the market,' said (realtor) Stephen Brighton."

"According to statistics from the Northern Arizona Association of Realtors multiple-listing service, sales have slowed locally and are down 13 percent from the same period last year. From June through August, 86 townhomes and condos sold this year, compared to 99 last year in the greater Flagstaff area."

"For the last year ending Aug. 30, 266 condos and townhouses have sold in greater Flagstaff, but Brighton said he believes the market has cooled considerably just as it has become flooded."

"Denny bought the two Flagstaff townhouses as an investment opportunity. She said she decided to buy property in Flagstaff because she liked the area and said it has potential in terms of real estate investment."

"The supply is about to increase even more and the median price come down as condos at The Arbors, an apartment conversion project, are offered for sale between $95,000 and $222,000."

"Developers of new townhomes and condos are using several incentives to lure buyers into the market. Valerie Caro, a local real estate broker who is handling the Arbors condo conversion, said the developer's move to set aside $500,000 down payment assistance has helped court buyers for the former apartments."

"For sellers of existing townhomes, there are fewer incentives to offer prospective buyers. 'They don't have the same ammo,' said Brighton. 'They have to make the price compelling.'"

"A spokesperson for NAAR said the sales figures are down from last year. 'Our condo and townhome market in Flagstaff has proved to be an interesting one,' said Ginny Britt, spokesperson and president for NAAR. 'We certainly seem to have more on the market as you drive through the neighborhoods.'"