The Arizona Republic reports on land sales. "A year ago, builders couldn't buy land fast enough, no matter how much it cost. Now, Valley land has lost some of its luster with home builders in the rapidly slowing housing industry, even when the property is in one of the northeast Valley's most desirable areas."

"The Arizona State Land Department is calling off this week's auctions of two prime pieces of residential land. The auctions weren't worth the agency's time because no builders or investors are willing to pay the appraised prices of $150 million for a parcel of more than 325 acres in Desert Ridge and $130 million for 1,276 acres in Fountain Hills."

"Potential bidders made it clear they can't pay what the properties are currently appraised for because they would have to charge more for houses than buyers are willing to pay."

"When the current Desert Ridge site first went on the auction block in August, it didn't draw a single bid. The state is in the process of having the sites reappraised. It could be next year before either site goes back on the market."

"So far this year, home building in metro Phoenix is down 24 percent from last year's record pace. Housing analyst RL Brown recently said new home permits could fall as low as 38,000 Valley-wide this year, down 40 percent from last year."

"Last year's investor-buying frenzy prompted builders to stockpile huge parcels for future growth. But this year, many of those speculators walked away from deals as the housing market slowed. Valley home builders are now offering tens of thousands of dollars in incentives to try to sell those houses, as well as others built for people who can't sell their existing homes."

"'There's a correction going on in the Valley's housing market now, and I don't think these parcels or many others should be auctioned this year,' said land broker Nate Nathan."

"'It's probably about as poor a time to bring a parcel of residential land as anyone could pick,' said RL Brown. The beneficiaries of the downturn are buyers, Brown said."

"'It'll give regular people an opportunity to buy houses for less money than they have seen in the last two years,' he said."

The Las Vegas Business Press. "Softening home sales are causing some publicly traded builders to divest land holdings to better improve their balance sheets and quarterly earnings. The consequences could be significant for the Las Vegas real estate market."

"Nearly all of the valley's top 20 home builders are now listed on the New York Stock Exchange. As such, many critical decisions for the Las Vegas market are being made out of state by corporate officers eager to appease shareholders. 'National builders are walking away from land deposits,' said Guyan Long, vice president of commercial marketing with TitleOne."

"Builders have been under mounting pressure from analysts and investors to better their financial outlook in response to fewer home orders, rising mortgage rates and growing inventory."

"It could be troublesome for the Las Vegas housing market. 'Nationally, we have heard of some home builders divesting land holdings in response to softening market conditions,' said Brian Gordon, principal with a Las Vegas-based economic research firm. 'They're now focusing more on homebuilding profitability as opposed to land values.'"

"Developers have had trouble finding affordable dirt in recent years due to the premium prices paid by Wall Street-backed builders. However, a flood of land deluging the market could also dilute property values."

"'Home builders are divesting their holdings or walking away from deposits because they recognize the land is not going to be able to put into production as soon as expected,' said Daniel Doherty, president of the Society of Industrial & Office Realtors' Nevada chapter. 'Wall Street has been beating these guys up, prompting them to take it off their balance sheet.'"

"'Wall Street sees [land] as a liability,' said Long. 'The question is how long are they going to carry it on the books until they build on it or sell it?'"