From a recent U.S. News and World Report article we find that Las Vegas is considered to be undervalued by 41%!

Las Vegas. After a dizzying run-up in prices, Sin City has become a cautionary tale for real estate investors everywhere. Since its 2006 peak, Las Vegas home values have plummeted by more than 50 percent. And today—at $77 a square foot—existing homes are actually priced below the cost of building materials, says Steve Bottfeld, the principal of Las Vegas-based Marketing Solutions, which specializes in real estate economics. "That's truly undervalued," he says. Although the market may be depressed today, several factors will support strong housing demand in Las Vegas over the long haul, Bottfeld says. The opening of MGM Mirage's CityCenter, which is expected later this year, will bring new jobs. The city's enviable climate—hot summers and mild winters—and its exciting downtown district will continue to attract residents. And the best-in-class architectural design of area properties will appeal to would-be buyers. "We are on the bottom of prices at this point," Bottfeld says. "There is no question that the residential market in Las Vegas is undervalued." The median single family home price in Las Vegas was $140,000, in the first quarter, which IHS Global Insight considers 41 percent undervalued.

We continue to see a frenzied pace of sales and buyers are realizing how attractive real estate values are in Las Vegas.  One of our neighbors from SoCal purchased their second home in our community (one is for an investment and the other will eventually be a 2nd home).  Even with the reduction in values in SoCal it shows that Las Vegas remains for affordable.  Here's some fast stats as of today:

• 12,331 active listings with 40% short sales and only 21% REOs (more REOs are on the way) 
• 13,599 pending and contingent sales with more than half (7,110) being short sales 
• Nearly 13,000 sold in the past 90 days.
  

For the complete article and the list of the top 10 most undervalued cities in America: http://www.usnews.com/articles/business/real-estate/2009/07/16/americas-10-best-undervalued-places-to-live.html