In Business Las Vegas reports from Nevada. "In his latest take on the Las Vegas housing market in light of new home sales remaining weak, new home prices dropping and inventory of existing homes increasing, local housing analyst Dennis Smith said he appears to have underestimated what was happening when he predicted at the end of 2006 that the market was bottoming out."

"Smith said any suggestions that the market was going to improve by the end of 2007 appears to have been just wishful thinking. Smiths said he wouldn't be surprised if some neighborhoods saw home prices drop as much as 20 to 30 percent because of a glut in those areas."

"The fallout from the subprime market has been felt by the housing market because of tighter credit standards, Smith said. In some cases, it's taking a credit score of 720 to qualify for a 30-year fixed loan. 'I have heard this from builders and lenders, and it is not helping sales,' Smith said."

"The growing inventory of existing homes also makes it harder for those who want to sell their home and buy a new one. Smith reported that the cancellation rate in March ranged from 24 percent in the northwest to 42 percent in the south valley."

"Michael Krein, who handles foreclosure cases, said what's happening in the foreclosure market is nothing in comparison to what's coming. He said he was handling about 500 repossessed properties and would like to add staff to handle another 500."

"Many adjustable rate mortgages will kick in by November and a second wave of cases entering foreclosure will occur, he said. 'The worst is yet to come,' Krein said."

"John Restrepo, principal of Restrepo Consulting Group, spoke at a commercial real estate seminar when he joked about the three reasons why people should believe economists: 1. We have a firm grasp of the obvious. 2. We generally don't know what we are talking about, but we make you feel it's your fault."

"3. We have forecasted nine out of the last five recessions."

The Associated Press. "In the rampant real estate speculation of the Las Vegas valley three years ago, people lined up outside Pulte Homes sales offices overnight."

"Having seen his house in an upscale part of suburban Henderson jump $200,000 in value in 18 months, Sam Schwartz felt he couldn't miss any part of the boom. He spent the night in the parking lot with about a hundred other people."

"Most people waiting were flippers just like him, he said. 'We had seen real evidence of what was possible in this crazy, inflated market, and we just wanted to get a piece of that investment equity,' Schwartz said."

"But when home prices unexpectedly took a backward step, many investors seeking to cash in quickly were left 'upside-down,' or owing more on their mortgages than what their homes were worth."

"The result was a glut of homes in the marketplace, communities spotted with empty houses and for sale signs, and a foreclosure rate in Nevada that leads the nation as owners unable to sell became saddled with unbearable debt payments."

"Realty Trac statistics show dozens of homebuyers in the Las Vegas area have more than one home in the foreclosure process, a telltale sign of investments gone wrong. One person has as many as 15 mortgaged properties in arrears."

"The bulk of the state's foreclosures, or 91 percent in March, were in Clark County. One of every 30 homes in Clark County began the process toward foreclosure last year."

"The day Schwartz reserved his home, the sales staff was raising prices $20,000 after every fifth buyer came inside. The $500,000 house he and his wife were eyeing had shot up to $540,000 by the time they sat down. Somehow, it still seemed like a good deal."

"'Everybody was thinking, 'Hey it's not the end of the world, because the homes across town are selling for $720,000. We have almost $200,000 in equity in the house and it isn't even built yet,' Schwartz said."

"The Schwartzes were able to cancel before closing on a property that suddenly was worth only $490,000, and recoup their deposit on a legal technicality. Schwartz, a 44-year-old life coach, said he 'narrowly escaped financial disaster.' But...he expects to see among the clients he coaches to succeed in their lives and careers."

"'There's going to be a lot of depression, a lot of anger. A lot drinking, gambling, and desperate stuff going on,' he said."

"New home builders are slowing down the pace of new projects in Las Vegas and are giving agents commissions of up to 12 percent and up to $100,000 in upgrades such as pools, granite countertops and appliances. 'The speculators completely dried up,' said Paul Murad, a real estate observer and author of 'Manhattanizing Las Vegas.'"

"In March, the number of resale listings for single family homes, condos and townhouses in the Las Vegas valley grew 30 percent from a year ago to 27,282, according to the Greater Las Vegas Association of Realtors. Sales and the value of homes sold were both down 38 percent from a year ago."

"State lawmakers are considering a range of bills that clamp down on the easy mortgage lending that helped heat up the market. 'The biggest loan I ever saw, a person bought a $1 million property and only had to come up with $1,000 in cash,' said Scott Bice, the state's commissioner of mortgage lending."

"'I don't think anything will ever prevent speculation,' he said, but added that new regulations and tighter credit requirements by lenders will eventually return the market to the good old days: 'When it takes good credit and money in a transaction to close it.'"