The 2,592 single-family homes sales in July were 16 percent higher than June's sales and 97 percent more than in July 2007, according to the Greater Las Vegas Association of Realtors, which tracks sales using the Multiple Listing Service. That marks the seventh consecutive month home sales increased.

"We have known for some time now the resale market is in full recovery and this continues to build on that," said Steve Bottfeld, a Las Vegas housing analyst. "I think you can look for the bottom on prices in the resale sector by midfall, and then it will be in full recovery."

Others are buoyed by the upswing in sales, but are tempering their enthusiasm on the pace of the recovery. The new-home market remains at its bottom in terms of sales, and two major local builders, KB Home and Pulte Homes, announced last week another round of layoffs.

The local economy remains weak and the delay in construction of Echelon pushes back the creation of thousands of jobs for workers who would move here and buy homes, analysts said.

Housing analyst Dennis Smith said the availability of credit for potential buyers remains a concern. Also, effective Oct. 1, the end of down payment assistance through the Federal Housing Administration may soften sales by the end of the year.

"I am encouraged to see the market is moving, but when those prices stop dropping and level off is when the market will have signaled it has turned," Smith said. "We are trying to find the bottom, and we are getting close."

The median price of single-family home fell 2.2 percent to $220,000 in July compared with June. That's more than 25 percent below the median price of homes sold in July 2007.

In a sign the more-affordable homes are doing better than other market segments, the average price of homes sold in July was 5.3 percent below those sold in June and nearly 33 percent below those sold in July 2007, according to the Realtors' group.

There is still no indication prices are going to stop falling. The median price of new listings in July was 2.3 percent below June and 34 percent below the price listed in July 2007, according to the group.

Patty Kelley, president of the group, said July's statistics are a mixed bag: It's encouraging to see almost twice as many home sales as last year, but it's also difficult to see prices slide because of foreclosures. The sales upswing is good news, she said.

"Once this foreclosure inventory is gone, I anticipate another correction in the resale market and the median prices will begin to increase rather quickly," Kelley said.

Bottfeld, whose tone is usually optimistic, said he has some concerns that sales will show a slowdown this month because people are watching the Olympics. He's also watching whether a large number of resettings of adjustable rate mortgages will contribute to the state's No. 1 ranking in foreclosure filings.

Although casinos are postponing hirings, the local economy in recession and high energy costs continue, Bottfeld said there is enough strength in the economy, population growth and job growth to boost the market. The indicator to watch is when sales pass 3,000 a month, he said.

"This is the beginning of Las Vegas getting out of its recession," Bottfeld said. "Housing has a major impact on this economy that people didn't recognize until we had the housing bust. You bring back housing and you bring back the economy."

As of this week, 7,143 homes are under contract and 2,976 waiting to close.

The new-home industry has been counting on the resale inventory to whittle down and provide a boost to its sales. Las Vegas has about a nine-month supply.

"It is encouraging because it shows we are working through inventory, and that is absolutely necessary to help in the recovery of the new-home market," said Ken Perlman, vice president of the Sullivan Group, a housing consulting firm. "You need to clean out the inventory that is competing against the new-home market."

Those sales bring in many entry-level buyers, who will ultimately upgrade to new homes at some point, Perlman said.

The inventory of single-family homes stood at 23,423 at the end of July, an increase of 0.1 percent over June, according to the Realtors' group. As of Aug. 11, 22,133 resale homes were on the Multiple Listing Service, a decline of more than 6,200 or 22 percent compared with the same period a year ago, according to Applied Analysis, a consulting firm.

Vacant homes represented 54 percent of the total, while rentals made up about 10 percent. Owners live in the remainder.

The year-to-year decline in resale inventory reflects a reduction in owner-occupied listings, which suggests investors and speculators continue to be affected by the housing market, Applied Analysis reported.

Pulte and KB Home layoffs show the new-home market remains weak, Smith said. They can't lower prices any more and are trimming staffs to keep their doors open.

KB Home, for example, has fewer than 100 employees compared with 500 at the height of the market in 2005. This marks the fourth round of layoffs for the builder and is the right staffing level for the volume of sales, according to Don DelGiorno, division president.

The increase in existing-home sales is great news for the housing market, and despite the slowdown in the gaming industry, DelGiorno said he remains optimistic about a turnaround.

"Yes, we have had some difficulties, but people feel good about this town because it has always picked up," he said. "What's happening now is part of the cleansing process of clearing out inventory. It will take some time for us, but it is a great sign."