The Arizona Daily Sun has this headline this morning; 'Hot housing market starts cooling off. "Home prices in Flagstaff have remained relatively stable since last year's massive increase, but homes are staying on the market longer as buyers take their time."

"Statistics from NAAR show homes staying on the market an average of 65 days, almost two weeks longer than last year. The number of homes sold for the second quarter of 2006, 320 homes, is also down 17 percent from last year's figures."

"A perfect example of the cooling off in the local real estate market might be found in a 2,540 square-foot home in Ponderosa Trails. The owners of the home have had to reduce their asking price twice, an action unheard of last year, when real estate agents say offers on homes would come in hours after the home was listed for tens of thousands over the asking price."

"Beth Heerding, a Realtor who is helping sell the property, said incentives and price reductions are a sign of the times, with more sellers competing for fewer prospective buyers. The owners reduced their initial asking price from $499,000 to $474,900 to better compete with other homes on the market and because the owners are moving out of the Flagstaff area."

"Realtor Ann Heitland said in addition to asking price reductions, offers of down payment assistance or paying the closing costs are some of the incentives sellers are using to close the deal here in Flagstaff."

"Bill Ring, a Flagstaff land use attorney who works closely with several developers, said developers are giving close scrutiny of their future developments, but no one is scrapping their plans."