A housing report from the Nevada Appeal. "A glut of overpriced properties and falling home values marked Carson City's housing market through 2006, housing experts say. Methods used to finance the boom in the past three years could prompt higher foreclosure rates in coming years."

"In an auction that lasted less than 10 minutes on the steps of the Carson City Courthouse, Judy and Ray Barrett's last tie to Carson City was swept away. The couple's foreclosed Empire Ranch Estates home sold for less than what the Barretts bought the house for in 2003. 'I'm numb right now,' Judy Barrett said. 'We didn't want to lose it. It's been such a nightmare, so it's a relief that we don't have to worry about it anymore.'"

"Right after the auction, (winning bidder) Jack Flower said two people told him they were interested in buying the home from him. If buyers want it so badly, why couldn't the Barretts sell it? 'It was listed way too high,' Flower said. 'But they had to. They had a huge loan on it.'"

"Tom Cargill, economics professor at the University of Nevada, Reno, said what happened in 2006 was the aftermath of a 'rapid escalation in housing prices' that could not be supported by supply and demand. Speculators hoped a 'bigger fool' would come along to purchase. Soon they ran out of fools."

"'The bubble has burst,' said Cargill, who studies the housing and construction markets. 'Property values have fallen 10 to 20 percent, therefore, people who bought houses are now unable to sell them without experiencing very large capital loss.'"

"'It was a good ride, but it's over,' said Cathie Jackson, branch manager with Mortgage Options Inc., of Carson City. 'Every so often the world takes a step back and regroups. And we're regrouping.' She said the news isn't all bad. Jackson is taking loan applications from people who couldn't get into the market in the last few years."

"The number of mortgage defaults by Carson City home owners increased 47 percent from 2004 to 2006, according to an investigation by the Nevada Appeal."

"'This shows speculation in the real estate market in Carson City,' said Alan Glover, Carson City clerk/recorder. 'It was way overpriced and people got in on interest-only loans and 100 percent loans and got in way over their heads.'"

"Glover said he believes it was mostly speculators who lost property in 2006."

"'Our Realtor said the real estate market is so bad and Realtors are quitting, and we picked the wrong time to leave,' said Judy Barrett. The Barretts' home sold Thursday on the city court steps for $343,000. They'll still owe the bank about $150,000."

In Business Las Vegas. "Anyone who doubts that the prices of resale homes are falling in the Las Vegas Valley can turn to the Clark County assessor's office for proof. The county, drawing on home sales during the past 12 to 18 months in which more and more sellers lowered their prices, reported it has trimmed residential assessments more than 10 percent on some properties. There were a few reductions as high as 20 percent to 30 percent."

"'It means an overheated market is simply adjusting,' said Richard Lee, vice president of First American Title, who said many investors are now willing to cut prices because appreciation is slowing. 'It is as simple as that. It is coming back where it should be. The pendulum swings both ways. The consumer who has the power to write the checks is dictating where the market should be.'"

"'This is definitely a trend for Realtors to say to sellers that 'you may not get as much money as you thought you would get in today's market conditions,' Lee said."

The Review Journal. "The developer of Sandhurst, one of the early high-rise condo projects announced for downtown Las Vegas, said Friday he's returning more than $7 million in deposits to 105 buyers as rising construction costs have doomed yet another condo project."

"Sandhurst had more than 60 percent of its units under contract and was negotiating with Corus Bank for roughly $250 million in construction financing, but coming up with equity financing was the 'toughest portion,' Michael Mirolla said."

"'We've taken it as far as we can. We're two weeks from pulling permits from the building department. But in all fairness to the buyers, we have to get funding first,' he said." "Jeremy Aguero, principal of a Las Vegas research firm, was among the first to predict that only 30 percent of the proposed 100,000 high-rise units would be built. He said sales have fallen significantly in the past three months."

"'It's not the first and I'm here to tell you it's not going to be the last,' Aguero said of Sandhurst's cancellation."