LAS VEGAS -- There has been another drop in housing prices in the Las Vegas Valley, but there may be a silver lining.

The Greater Las Vegas Association of Realtors said the median price of a single family home dropped 2.5 percent between July and August. Sales were down 13 percent.

But to put that figure into perspective -- sales were actually up about 27 percent compared to this time last year.

It's a strange scenario -- home prices are falling, but there are so many people out there ready to buy but that can't get a home.

New Yorkers Bill and Virginia Reno have decided to buy a summer home in the Valley. They said the process wasn't easy.

“From what they were asking, we bid $9,000 over what they were asking,” Bill Reno said. “Fourth one we put a bid on, and we didn't think we would get a property.”

They won the bidding war on the three-bedroom home after putting up just over $80,000 for it.

But why is it so tough to get such a bargain?

“There are a large number of cash sales, a large number of retirees beginning to move in here or future ones, and we also have a good number of cash investors,” said vice president of GLVAR Paul Bell.

Forty-three percent of the homes bought in August were paid in cash. Sales numbers reflect a spike since May of last year, keeping banks happy.

“Cash sales of dilapidated properties have bought down the average sales price throughout the Valley,” Bell said.

Investors are buying the cheap properties that have been trashed by previous owners -- that's what’s driving median home prices to around $135,000.

“The good news is that the replacement buyers have done an excellent job on restoring these homes,” Bell said.

Bell said home values will rise again soon, thanks to people like the Renos.

“Then we saw this little house, and it still needs work done on it, but it's still good. I think it's a very good deal for the price, and we can afford it. I think it's great,” said Virginia Reno.

Bell said there are about 6,000 more foreclosed properties that may hit the market very soon.

For those who are looking to buy, Bell said to be patient and listen to everything the agent and broker say.

About 70 percent of the homes sold in August were bank-owned properties. If that trend continues, real estate experts said home prices will rebound within one or two years.