A pickup in home sales is behind the optimism: four straight months of higher sales than the month before, according to the Greater Las Vegas Association of Realtors. In April the 1,794 home sales on the Multiple Listing Service were 30 percent higher than April 2007, the first meaningful month-over-month gain amid the housing slowdown.

No one is expecting a boom, but there is a sense of hope in the real estate community that the bottom has been reached and the market is inching back up.

In the first quarter, transactions handled by Coldwell Banker Premier Realty were up 70 percent over the previous quarter and 20 percent above 2007's first quarter, said Bob Hamrick, president and chief executive of the Las Vegas brokerage. April transactions rose substantially over last year, and Hamrick said he expects an increase in the second quarter compared with 2007's quarter.

"There have been reports that the bottom has been hit," Hamrick said. "I can't guarantee this, but we can certainly see it from here. It's not with great velocity, but we are bouncing off it."

So far, May hasn't been as good as April, and Hamrick said the market may be at a "sloppy bottom," where there are monthly variations.

Properties owned by banks and other lenders continue to account for more than half of the homes being sold every month, and foreclosures and short sales have contributed to declining prices. But many foreclosures were sold after numerous offers were received.

"A property's true market value is $400,000, and it's listed for $375,000," Hamrick said. "There might be 10 to 15 offers on the property and it sells for $400,000 or $410,000. In some ways, it is back to a crazy market."

The $235,875 median price in April was 23 percent below the price in April 2007.

Demand has been pent up, with many buyers on the sidelines because of the credit crunch that hit in August and worries about buying into a market with falling prices. Some buyers are worried about missing out on an opportunity and are stepping in, brokers say.

"I don't think this is temporary," said Rick Shelton, the broker-owner of RE/MAX Associates. "It is definitely a warming trend. I won't call it a recovery yet, but people are getting a sense of the bargains on the market because of the vast amount of properties and decline in prices."

Most activity has been high end - exceeding $1.5 million - and homes for $250,000 or less, said Mark Stark, chief executive of Prudential Americana Group. He said his office's transactions were down during the first quarter, but April picked up 12 percent compared with April 2007.

High-end buyers aren't willing to pay $900,000 for a noncustom home that is only selling for that price because of appreciation, Stark said.

Thirty percent of buyers are using the Federal Housing Administration's federally insured loans that allow a 3 percent down payment. That has helped the entry-level market, brokers say.

"The middle range is the getting hit the hardest," Stark said. "The homes $400,000 to $900,000 are getting crushed."

The demand for more affordable homes has cut into agents' income, Stark said. It takes 1.5 transactions to earn the same amount as one transaction in the past, he said. That is evident in sales volume reported by the Realtors' group, which was down 5 percent in April compared with April 2007.

Century 21 JR in Henderson reported 40 sales in March, 10 more than in March 2007 and 45 sales in April, 12 more than a year ago.

"Pricing has definitely something to do with it," said Rosa Herwick, the broker-owner of Century 21 JR. "There is a larger percentage of buyers who can afford these prices."

The inventory of the homes between $200,000 and $300,000 is dwindling because of the strong demand and that should eventually fuel interest in the next level of homes, Herwick said.

A key will be the willingness of homeowners to cut prices to the point where they can attract buyers.

"The sellers have to become more realistic," Herwick said.

The Realtors' group reported about 23,000 single-family homes were on market at the end of April, and Hamrick suggested that level of inventory will scare off new-home construction for now. That will allow the inventory to be reduced even quicker and help any housing recovery.

No one can put a timetable on the recovery, which many expect to be aided with the opening of more resorts in 2009 and 2010 that will create jobs and bring more people into the city. For now, many are just happy that the latest numbers are trending up, not down.