A pair of reports on homebuilders in Arizona. "The Valley's slowing real estate market is giving new real estate players a chance. A Scottsdale firm purchased two prime parcels of state trust land in Peoria on Thursday. It was the only bidder for one parcel and easily beat Toll Brothers, which has spent millions in the past on state land, for the other."

"Now some land deals in Pinal County and on the edges of the West Valley are falling through as the housing market slows and builders pull back. Darrell Sherman said his group is planning large residential projects on both parcels."

"The auction room of the State Land Department was packed with builders and land brokers Thursday. But hardly any were there to bid on the two prime parcels of state land in Peoria. They were there trying to get an idea of whether the Valley's slumping new-home market is poised for a rebound."

"The state received only three bids for the parcels, just slightly more than what they were appraised at six months ago. Two of the bids were submitted by a relatively unknown developer."

"It was a far cry from just months ago, when bidding wars among major home builders and developers pushed prices millions of dollars above the appraised value. Construction of new homes is down 18 percent from last year's record pace. Many home builders now own too much Valley land, analysts say. They won't be able to develop much of it for a while, so they aren't in the market for more."

The Arizona Daily Star. "Phoenix builder Beazer Homes has put off plans to move into the Tucson market, while other home builders are re-evaluating how to deal with a cooling local housing market."

"The home-builder caution is in sharp contrast to housing activity over the last two years, when the price of land rose quickly and builders enjoyed waiting lists and lines of hopeful buyers leading out the door."

"'I really can't comment on that at this point just because I'm not sure where it's going to end up,' said Rancho Sahuarita developer Bob Sharpe. He said generally that new home builders moving into the Tucson market 'might be a little bit more distressed' by a more volatile housing market in Maricopa County."

"Another Beazer official, Guy Melton, said the company would not be coming here for at least the next six months."

"Andrew Schorr, a lawyer who works with both home builders and landowners, said he has been involved in two other recent large land deals in which home builders walked away from their purchases. In one case, one builder 'left money on the table' because they ended the deal after a feasibility period."

"'They weren't giant deals, but they weren't little, five-acre deals either,' with purchase prices in the millions, Schorr said."

"Some home builders are adjusting to a cooling market in other ways, said John Bremond, president of KB Home's Tucson division. While some builders are offering incentives like free pools and reduced interest rates, others are simply lowering prices."

"'I can't really say, with certainty, what we will do in the near future,' Bremond said. 'There have been some price reductions in some areas.'"

"As the inventory of resale homes has increased over the last several months, sale price for some homes has dropped. In Rancho Sahuarita, for example, some KB Homes have been marked down as much as $10,000 over the last three months, Bremond said."