A pair of reports provide an update on the Arizona housing bubble. "National new-home sales took their worst drop in nearly a decade in February, and early indications are that it also wasn't a good month for builders in metropolitan Phoenix. February numbers for metro Phoenix's new-home market will be out early next week and are expected to show a similar, or greater, decline."

"'Looking at the preliminary numbers, obviously February was a disappointment compared to last year and year-to-date,' said Valley housing analyst RL Brown."

"Builders now are requesting fewer building permits because they are trying to clear inventories of speculative, or 'spec,' homes on which buyers didn't close, Brown said. Some buyers waited too long to list their existing homes, thinking those properties would sell quickly, as they did in last year's selling frenzy. The deadline to close on the new home passed, and the builder took it back."

"Brown said the resale market also is being pressured by investors unloading their houses. With more spec homes available on the new-home side and a growing inventory of existing homes for sale, consumers have more options and can be more picky in finding and buying homes. 'The bottom line is it is a market in transition now,' Brown said."

And in the northern part of the state. "Theme park speculation seems to be the reason so many new real estate offices have appeared in Williams in recent months, though the fate of the theme park itself remains to be seen."

"Three real estate offices opened in January alone. According to John Rushton of Bankers Real Estate, this brings the total number of agencies in Williams to 13. Rushton said there were only three or four real estate offices in Williams three years ago."

"Debbie Campbell said the theme park has contributed much to land speculation in the Williams area as well. 'Just because it's gotten so high up there (in Flagstaff), I think,' said (realtor) Debbie Campbell. She said a lot of buyers are also looking to relocate to cooler climates. 'Our second-home market is booming really,' said Zecchin. 'It seems like most of our buyers are from Phoenix, Lake Havasu, and California of course.'"