The third quarter numbers released by DataQuick Information Services of California reflects discounting by homebuilders and the increased willingness of owners of existing homes to cut prices to make a sale.

Seven of the 51 ZIP codes recorded increases in home prices during the third quarter, but most of those are attributed to sales of luxury high-rise condominium units.

Las Vegas housing analyst Dennis Smith said he's not surprised by the drops reported in many neighborhoods.

His own statistics for the third quarter, he said, show a 7.9 percent drop in new-home prices from the third quarter of 2006. Prices of existing homes fell 10.6 percent, he said.

"It is going to go lower," Smith said. "Like all statistics, they lag a little bit."

The biggest drop in prices was recorded in 89118, in unincorporated Clark County. The area bounded by Interstate 15, Tropicana Avenue, Warm Springs Road and Rainbow Boulevard saw its prices dip 27 percent to $185,895, the least expensive homes of any ZIP code in the valley.

Only one other ZIP code recorded a drop of more than 20 percent. In 89146, which is bordered by Charleston, Rainbow and Decatur boulevards and Spring Mountain Road, prices fell 21 percent to $225,000.

The biggest decline in Henderson was in 89015, in the eastern part of the city, where prices fell 17.5 percent to $259,950. Prices rose in Anthem, up 7 percent to $418,414.

In North Las Vegas, the steepest decline was in 89081, which fell 12 percent to $275,500.

Outside the valley, the median price of homes sales in Mesquite during the third quarter fell one-half percent to $225,000. Boulder City saw its prices decline 7 percent to $313,250.

Overall, the prices drops don't seem alarming, showing a 2.1 percent decline from the third quarter of 2006 to median price of $298,892. That's a price of $170 a square foot.

But the closing of several high-rise condo units along the Strip and downtown have softened the overall decrease.

For example, there were 323 sales in the 89109 ZIP code during the third quarter for a median price of $675,000 and price per square foot of $513. That's a 35 percent gain over the third quarter of 2006.

In downtown Las Vegas, the median price of sales was $422,499, a 75 percent gain over the third quarter of 2006.