The Casa Grande Dispatch has this report from Arizona. "Residential real estate has become a lot more calm in the last year, experts say. That doesn't mean homeowners are stuck with houses they can't sell. It just means the time in which they can expect to sell their house will be longer, and they should expect to negotiate on an offer at less than their asking price."

"'Sales are off 27 percent for the whole Phoenix area, from here up to Cave Creek, but prices are up 10 percent,' says Debbie Yost, broker in Casa Grande. 'I would estimate that 40 percent of sales last year were investor sales.'"

"The bad news is that the number of homes on the market has mushroomed. There (is) a staggering 14-month supply of inventory. 'Sellers are slow to react,' Yost says. 'They don't want to hear that the house they bought last year isn't worth as much as it was a few months ago. Some of them are angry.'"

"The glut of existing homes on the market this year doesn't seem to have slowed construction of new homes. Rick Miller, planning and development director for the city of Casa Grande, says that as of mid-June, building permits for new homes were 358 ahead of the same time last year. That has Casa Grande on pace for a record 2,200 to 2,400 new home permits for 2006."

"The number of homes for sale this year is in large measure due to the number of investor purchases made in the last couple of years. Many buyers who purchased houses a year or two ago are ready to turn a quick profit in 2006. And many resident homeowners are hoping to leverage recent price increases and trade up."

"'Unless you bought last year (when prices peaked), you're probably in good shape,' Yost says. 'The people who are caught are the ones who pulled their equity out (with a home equity loan), or financed with an adjustable rate mortgage (ARM) or an interest-only loan. We tell people, 'If you're just selling your home to make a killing, you might as well take it off the market.'"

"What was a seller's market last year has become a buyer's market in 2006. 'Because there's so much inventory, there are some bargains out there,' Yost says. 'We're back to a market where (in order to sell quickly) houses have to be clean, in good shape and at or under the appraised value. I don't think this is going to be a short-term thing. People are going to have to get realistic about the price.'"

"'The builders are major corporations, not small companies,' Yost points out, adding that they wouldn't keep building homes if they weren't turning a profit. 'A lot of the spec homes they're selling are canceled sales where people bought last fall or winter. They've pocketed the (buyers') earnest money, and they use their affiliated mortgage company that they make money on.'"

The Arizona Republic. "Realtor Adam Swaney, with R.J. Springer Homes in Maricopa County, discusses the Valley's housing market and its future. Question: Are recent worries about the Valley's cooling housing market justified? What is the current state of the market? Answer: The market is tempering right now, and there really is every indication that people are out there buying and selling homes. There's a large amount of listings on the market.'"

"Q: What is a common question or concern you hear from clients? A: The most common question I get is regarding home values and whether the value will hold. My answer is: Typically, yes, it will. Typically, Phoenix has been known for having inexpensive housing, and it still exists, just a little farther out of town.'"

"Q: Do you have any other advice for buyers or sellers? A: 'The good deals are still out there, they just aren't in the center of town.'"