Signs of life

Ever so slowly, the Las Vegas housing market shows signs of emerging from its six-year coma.

Notably, the re-awakening has occurred despite the general ineffectiveness of government program after program intended to help distressed homeowners. Instead, investors in search of bargains have helped push us closer to recovery.

The Greater Las Vegas Association of Realtors reported this week that home prices rose for the third straight month in April and inventory was down to a five-week supply. The median price of the 3,185 single family houses sold last month was $127,900, up 4 percent from March.

The number of homes on the market has dwindled in part because banks have become more cautious when proceeding with foreclosures thanks to a new state law designed to stop "robo-signing."

But while that has slowed foreclosures, it won't end them. Homeowners who have stopped making mortgage payments - living free for many months - eventually will face the consequences, and those properties will return to the market, impacting prices.

Still, the worst may have passed. At the very least, the reduction in foreclosures, while distorting the market somewhat, has helped mitigate the chaos of recent years.

In addition, Fiserv, a national outfit that provides analysis to the financial and insurance industries, issued a report this week forecasting annual 4 percent increases in home prices over the next five years. The report is bullish on Southern Nevada, predicting that prices will rise the most in harder-hit regions, including Las Vegas.

Just as the housing bubble built up over time, the recovery of the local market remains a lengthy and laborious process. But there are many more reasons for optimism today than there were a year ago.