Some people are so wrapped up in the investment side of property aquisition, they forget that you and your family actually need and want a roof over your head! Prices may continue to drop, they may not, but if you are looking for a primary residence, this is a good time to buy a home.
The tax benefits of home ownership, the current interest rate environment, and a stable place to live for you and your family are all considerations you must take into account. Plus, if you hold the property long term, history tells us that you will see an increase in value.
Now, if you are a real estate investor, your personal financial situation is as important as the market in which you are looking to purchase.
As for asking agents which clients have made money since 2005....It is no secret that the market has dropped and is significantly lower than 2005 levels (nationwide). It certainly does not take an economist to realize this truth. But, trying to predict the bottom of any market is a tricky game that even the best investors do not predict accuruatly. Anyone who is telling you the market will definitly go up, or will definitly go down over the next year or so are simply speculating. They may be proved right, they may be proved wrong, but that is not because they can predict the future.
In my opinion, over the next year or so, the market will continue to hover around current valuations, moving up or down a maximum of +/ - 5%.
You should probably ask yourself if a 5% or so drop, or increase in value will affect your decision to purchase or rent once you move here.
By the way, most areas of Las Vegas are quite well maintained and are very nice place to live and work.