Sales of new $1 million-plus single-family homes during the first half of 2007 fell nearly 34 percent from the same six-month period in 2006. SalesTraq reported 69 of those closings in 2007, down from 104 in the first half of 2006.

In the resale market, 322 existing homes priced $1 million or more were sold through June, down 11 percent from the 362 sold in the first half of 2006. SalesTraq numbers include sales by owner not included in the Multiple Listing Service chart accompanying the column.

"I think there is a common misperception that the luxury (home market) hasn't fallen," said Brian Plaster, president of Signature Custom Homes, who predicted the second half of the year could be worse.

Plaster said his company built 10 to 12 luxury homes in 2006 but could end this year with six or seven projects.

In July, KB Home announced it had scrapped its entry into the $1 million home market, four months after unveiling La Vita at Seven Hills in Henderson. Semicustom homes priced between $1.4 million and $2 million weren't selling at a fast-enough pace, the company announced.

Luxury homebuilder Toll Brothers blamed part of its dismal third quarter showing when it had an 85 percent drop in its profits to its showing in Las Vegas. The housing slump has cut sales, increased cancellations and forced the company to write down property.

The company reported a $29 million write-down in Nevada, the same amount as in California, and reported it's renegotiating deals and trying to reduce its land options.

In a recent report, Toll Brothers rated Las Vegas as an F minus, but CEO Robert Toll said last week, "You might add another minus to that." Responding to a question during a conference call on what that grade means, Toll said it means Las Vegas is flunking.

"What are we doing about it?" Toll asked. "We are out there with the rest of the builders in Vegas praying. There's not much you can do. You can't advertise your way out of that situation. You just have to wait for the market to come back. ... Yes, in the last eight weeks we have taken seven agreements. So that is what we consider real bad."

Toll officials said mortgage-liquidity issues and higher borrowing rates may prevent some customers from closing, while others may find it more difficult to sell their existing homes.

The Las Vegas luxury home market had appeared immune to the slowdown. Earlier this year, SalesTraq reported positive 2006 closing figures for homes selling for $1 million or more: 425 new homes, up 35 percent over 2005; and 730 resale homes, up from 719 in 2005.

The first-half 2007 numbers show the luxury resale and new-home market jumped a combined 7.4 percent over 2006 from 539 to 579, but those numbers are skewed by the closing of several luxury condo projects, which attract many out-of-town buyers and investors. Sky Las Vegas, for example, has had 59 units valued at $1 million or more close so far this year. There were 52 units over $1 million that closed at The Residences at MGM Grand. Panorama Towers also had several units close this year.

Competition has grown within the luxury market, which at one time was almost exclusively a resale domain, said Bob Hamrick, president and chief executive of Coldwell Banker Premier Realty.

With more homebuilders willing to construct new homes and high-end condominiums in the $1 million-plus range, buyers now have more options. As sales have declined, the inventory has grown, in part because of more existing homes coming on the market.

"More people were able to buy in that price range, and they stretched their financing and maybe they shouldn't have," said Kenneth Lowman, broker/owner of Luxury Homes of Las Vegas. "They bit off more than they could chew with adjustable-rate mortgages. Their payments all of a sudden go from $4,000 a month to $7,000, and they are forced to sell."

Plaster said another reason inventories have increased is that people are looking to maximize profit from the appreciation of homes in recent years. But those same people are unwilling to pull the trigger and sell quickly because they're in a financial position to wait for the highest price, he said.

Still, even the wealthy are affected by the credit crunch because interest rates have risen on jumbo loans — mortgages more than $417,000 — making it more costly for them to purchase, Plaster said.

"I think people are scared right now," Plaster said. "They don't know what's going to happen in the market. We are all optimistic about the market, but what has happened in the last two weeks with the credit market makes everyone pause."

In addition, many people who live in homes priced between $500,000 and $800,000 want to move up to the $1 million-plus bracket, but the slowdown has prevented them from selling their properties, Plaster said.

Despite the pullback, the luxury market is faring much better than the market as a whole. New-home closings are down nearly 43 percent for the year, while existing-home closings are down nearly 35 percent.

Forbes.com on Las Vegas housing market: Forbes.com has ranked Las Vegas as the fifth-worst housing market in the country, while Detroit and Cleveland were ranked the worst. In describing median home prices declining 3.6 percent over last year, Forbes.com said, "if there's one rule to Vegas it's that eventually losses catch up to gains. Overbuilding and risky speculative buying has caught up to Sin City, now left with a glut of inventory. Buyers are gambling at more than the city's craps tables; should home prices continue to fall their real estate investments could be at stake."

Pulte signs up for green program: Pulte Homes has signed on as the first production homebuilders to participate in the Southern Nevada Green Building Partnership program of the Southern Nevada Home Builders Association.

The program was established to help builders design and construct more environmentally sensitive homes. It uses third-party inspection and verification that the program guidelines have been met, said Monica Caruso, spokeswoman with the association.

Pulte plans to launch its participation with Villa Trieste at West Park in Summerlin Centre village between Sahara Avenue and Charleston Boulevard, Pulte spokeswoman Sasha Jackowich said. Pre-sales are under way from a temporary sales office, and model homes will be available by the fall, she said.

Villa Trieste will have three-story home designs of 2,400 to 2,800 square feet. The 185-home community will include water conservation and efficiency features. Prices start in the $400,000s.

• In its report released Aug. 22, the National Association of Residential Real Estate Investment Advisors reported that the number of single family homes on the Multiple Listing Service of the Greater Las Vegas Association of Realtors shows the inventory increased by 173 over the previous week to 21,337.

There were 2,061 homes under contract, down 47 from the previous week.

• The value of building permits in Las Vegas in July was down sharply from July 2006. Permits totaling $36.8 million were issued last month, down from $97.4 million in July 2006. There were 77 home permits issued for $9.1 million, down from 123 worth more than $18 million in July 2006. The value of new commercial projects fell from $15.5 million to $6.9 million, and commercial remodels were down from $27.9 to $9.1 million.

• EJM Development Co. has started construction on a 148,000-square-foot building in its 110-acre master-planned Arrowhead Commerce Center in Green Valley. The property at 3755 E. Post Road is scheduled for completion in the second quarter of 2008.

• Behringer Harvard announced it has entered in an agreement to acquire publicly traded IPS US REIT and its portfolio of 35 Class A office properties, providing its entry into the Las Vegas market.

• As part of a sting, the Nevada State Contractors Board cited four contractors for alleged unlicensed contracting activities involving submitting bids to remodel a bathroom. Those cited were Monserrato Gavino-Rivera, Chester Yannatone, Greg Scott Warweg and Javier Valario Nevarez.

• Coldwell Banker Premier Realty has been named to the Coldwell Banker Chairman's Circle. The designation was awarded to companies that closed adjusted gross commission income of $8 million or more during 2006. It is one of 91 Coldwell Banker-affiliated companies in the world to receive the award.

• Valley Residential Properties, led by Marty Burger of Artisan Real Estate Ventures in partnership with Jeffrey Fine, announced the closing of four multifamily housing complexes totaling more than $120 million in acquisitions. The properties include Meadow Ridge, Bayshore Club Apartments, Spanish Oaks and Summerhill Villas.

• Turnberry was honored by its peers with three awards for its high-rise condominium developments in the first Best of Nevada Real Estate Awards. Turnberry Towers won for best builder overall product. Turnberry Place won for best development, and the Residences at MGM Grand tied for the best architectural design in a residential development.