Mountains Edge was the #1 selling master planned community in the nation for 2007, with sales almost double the second-place Phoenix community. Another Las Vegas community, Providence, was #5 in sales. I recently sold an REO at Mountains Edge to a client at an incredible price. No other similar model has sold for less than the price he paid, but he is understandably nervous about the number of REOs that have sold at below-market values since he bought. Mountains Edge homeowners should feel good about the strong sales; this is a great community and its continued desirability bodes well for future values.

I spent two hours reading this morning's housing and financial news, and what did I learn? That there is very little consensus on housing, mortgages, the stock market, and recent moves by the Federal Reserve. At times like this I'm comforted by the fact that real estate is local. Locally, our sales on existing homes are skyrocketing. Homebuyers are picking up great deals, and barring an apocalyptic event such as a national meltdown, Las Vegas homes should begin to rise in value in 2008.

The Fed just reduced its federal funds rate by 3/4 percent to 2.25%. There is a lack of consensus as to whether this and Sunday's moves by the Fed will help or hurt.

Mortgage experts are divided as to whether to lock your mortgage rate immediately. The 10-year rate rose this morning, and one local mortgage banker expects to see midday adjustments due to deteriorating conditions. Another local mortgage banker tells me that it is definitely not time to lock rates. It's unusual to get two opposite opinions from two very experienced mortgage bankers, but "dissension" seems to be the key word for today. It's important to note that mortgage rates are driven by mortgage bonds, and not by the fed funds rate.

Building permits and housing starts are down across the nation. For Las Vegas, 155 building permits were issued in January and 107 in February. Locally, 5,895 permits were pulled in 2007, down from 9,765 in 2006. While this could signal further loss of construction jobs in Las Vegas, with the exception of a few resort projects in trouble, commercial construction should fuel the need for housing in 2009.

There was more ... much more. It's a scary time for the U.S. economy. It can seem overwhelming. But in my corner of the world, it looks like the best time to buy a home, whether it's a vacation home, a rental, a retirement home or your primary residence.

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