The Arizona Republic reports on the bursting housing bubble in the east valley. "The number of houses for sale in the Southeast Valley keeps rising every month as investors apparently have begun dumping the homes they hoped to make a killing on. Real estate agents say it's not that a bubble has burst but more a sign that the market has returned to normal. They say many buyers and sellers haven't realized it's now a buyers' market."

"The number of homes for sale in the Southeast Valley, from Ahwatukee Foothills to Gold Canyon, more than doubled in the past seven months to 9,590 in December. Homes are staying on the market an average of 42 days instead of four as they did a year ago."

"Agents said they believe a major reason for the increase in residential listings is because investors and homeowners who bought second and third homes over the past few years as investments have realized the time for the biggest gains has passed. 'The biggest cause of our glut is the investors who are trying to take their profits,' said Gina McKinley, a Chandler realtor. 'It's making it difficult for the poor sellers who have to try to sell. Last year, the investors were making it hard for people trying to buy.'"

"Cindy Flowers, who works in Gilbert, said she was stunned to discover that when she sets a price for a listing and looks at other homes for sale in a neighborhood, from half to three-fourths of them are vacant. That indicates the homes were purchased for investments. She has noticed that in many neighborhoods. 'That's just shocking. That means a lot of people were moving up or sideways or going somewhere else. And there was an influx of investors,' she said."

"In addition to investors dumping houses, another reason listings are increasing is that it's normal this time of year. Whatever the reasons more people are selling than buying, the number is increasing quickly. Ahwatukee Foothills, for example, went from 66 listings in the fall of 2004 to 285 last September and 470 on Tuesday."

"As a result, sellers are having to lower prices. McKinley said, 'All the people who bought during the crazy time are trying to sell. People who bought in the $500,000 to $600,000 range are selling in the $400,000 range and having to drop their prices.'"

"As for the future, Flowers predicts the listings will keep rising into the summer. 'I don't think it's serious, but I do think we have more pain ahead of us,' she said."