A trio of reports on speculation in the housing market. South Carolina. "Downtown real estate is headed for a midcourse correction after an initial period of euphoric sales, developers, real estate agents and analysts say. Columbia’s downtown housing boom started with prices skyrocketing up to $750,000 for condos. But look for most prices to settle around $200,000."

"Why the price adjustments? Skeptics say too many units have been announced and prices have been inflated by speculators. 'Columbia is not ready for hundreds of condos starting at $300,000,' downtown developer Tom Prioreschi said. 'They will be lower than that.'"

"To make Columbia’s downtown housing boom work, developers have to appeal to the buyer who wants to live in the home, not just investors who want to flip them for a profit, says financier Don Tomlin. Tomlin said developers 'have to decide if we are selling investments or residential.'"

"Prioreschi waves off the naysayers. 'These are quality developers,' he said. 'They do market analysis. These are not some yokels.'"

"'The people who will get hurt are the people who come in with the big project at the end of the market,' Columbia City Council member Jim Papadea said. 'But Columbia has a long, long way to go before that happens.'"

The Record Courier in Nevada. "The seller's market in Douglas County is over. The average price of a home in Douglas County dropped significantly in recent months, from a high of $675,000 during the last quarter of 2005 to $544,600 during the first quarter of 2006."

"Steve Bohler, a broker/owner in Minden, said home selling prices in Douglas County are significantly lower than the asking prices, which indicates to him that they're overpriced. About four or five years ago, people moving here from California had never refinanced their homes, but that isn't the case now, he said."

"'Instead of coming here with $700,000, they now have $300,000 to $400,000 cash,' he said. 'They want to buy a home for a couple hundred thousand and still have enough equity to retire. I hear that from a lot of people,' he said."

"The recent real estate boom seems to have bypassed cities like Denver and Albuquerque, N.M, but those markets are now raising some eyebrows, according to David Lereah, chief economist for the National Association of Realtors. 'What these metros have in common is a healthy local economy and affordable housing prices,' he said. 'It is becoming increasingly clear that in the aftermath of the boom, households are now seeking affordable property to purchase and live in,'"

The Wichita Eagle in Kansas. "Many are surprised that the first half of 2006 set yet another record for local home sales, even as interest rates creep up and national home sales and home building slow down. If those who wanted a new home have already had a chance to buy one, who is buying these houses now? And when will it end?"

"A new group has also emerged in the past year: Wealthy out-of-town investors looking for a safe haven for their money and a little rental income."

"But some property managers say these out-of-town investors may be too optimistic. Wichitans are reluctant to spend more than $1,500 a month in rent for anything, Debbie Thome, owner of a property management firm."

"After annual gains of up to 30 percent, investors in California and other hot real estate markets have cashed out, earnings hundreds of thousands of dollars. Those gains are subject to heavy federal and state taxes. But the IRS allows owners to defer taxes if they buy property of equal or greater value."

"For those who made a few hundred thousand dollars on a sale, Wichita is attractive because they can afford a nice house for $100,000 and a very nice one for $250,000. Some buy with the intent to sell later, but the slow appreciation in Wichita can come as a shock."

"(Broker) Cindy Sundell-Guy had a customer from California buy a house and wanted to sell it six months later. The price appreciation wouldn't cover the cost of buying the house. 'They were shocked they couldn't get their money out,' she said."

"So how long can the good times continue? Experts say that rising mortgage rates will cool the boom here, too, just as they have elsewhere. It's just a matter of time. The number of out-of-town investors can never be that large considering they expect to rent those homes out to somebody. It could just be that Wichita isn't different than the rest of the country, say brokers, just a little behind the times."