An Arizona Republic editorial on the Phoenix housing bubble. "Speculators supposedly have fled metropolitan Phoenix's housing market, so it's no surprise that home sales have dropped as that demand has dried up."

"What is surprising is that home sales and building are down more than the rate at which investors were buying last year. New-home building permits were down 16 percent for the first three months compared with a year ago, reports real estate analyst RL Brown. Resales plummeted 34 percent during the first quarter."

"Roughly combine those two figures, and the housing market is off more now than the boost investors gave it last year."

"As many as 35 percent of all home sales Valley-wide were investor-driven deals last year, according to recent figures from mortgage giant Freddie Mac. That's almost 10 percent higher than previous estimates."

"Not all of the investment deals were for new homes. But in metro Phoenix, investors flooded the new-home market first. Home builders tried to crack down on speculators, but that didn't deter their binge buying. Speculators then poured into metro Phoenix's resale market and drained inventory and hyperinflated those home prices."

"Look at what's going on now. New-home deals are falling through because people who signed to buy one can't sell their existing home or can't sell it for enough to buy the new one or pay off the debt on their old one."

"Valley home listings hit 36,000 in March, an all-time high. Housing analysts say as long as listings keep climbing, the housing market will keep slowing. Who is trying to sell now? If it's the less-experienced local investors who got into the game late, then the Valley's housing market isn't done hurting."

"Phoenix apparently no longer is the darling market for big home builders. From Scottsdale-based Meritage Home's recent first quarter earnings report: 'In Phoenix speculative activity and high price appreciation in 2005 has recently contributed to higher-than-average cancellation rates."