The US News and World report looks at Arizona. "Roger Maehler has good reason to feel smug about the panoramic mountain views from his new backyard. 'I think I got a good deal,' the Scottsdale, Ariz., resident says of the acre-plus adobe ranchette he snagged last week for $655,000-a 23 percent discount from the original $850,000 asking price."

"Complete with swimming pool, spa, and a big-screen TV in the great room, the sprawling five-bedroom property was high on his list when he began shopping for a new home in May. But like many buyers these days, Maehler decided to hold off and see how the weakening market shook out over the summer. 'I guess it was worth the wait,' he says."

"(In) the Phoenix area, the number of homes on the market has more than doubled to 45,000 since last October. 'I literally could have spent eight hours a day, five days a week looking at houses,' says Maehler, who toured more than 30 properties before making a bid."

"Economist Mark Zandi says it could take a 'Roto-Rooter' to finally flush stubborn sellers-and their market-clogging inventory-from real-estate listings."

"In the short run, he expects the market could stabilize somewhat. 'But it could very well be a dead-cat bounce,' the economist says of the chance that a strong economy and persistent inflation will push up mortgage interest rates-just as sellers move to relist their houses in the spring. If that happens, 'it'll come right out of housing prices again.'"

The Gazette Journal from Nevada. "New condominium projects for downtown Reno are sprouting up like Starbucks in downtown Seattle. But for all the proposed condo projects, including eight major condo towers planned to be built through 2009, there is a critical question; is there a large enough market for condos in downtown Reno?"

"According to the assessor's data, 72 condos, or 58 percent, have been sold to buyers with addresses other than 200 W. Second St., signifying them as second-home owners. Of those, 18 condos are owned by people in Reno-Sparks, but with a different mail address."

"Nearly 2,000 downtown condo units are in some phase of planning or construction. But few of the recent flurry of announced condo projects have opened to residents, which means that the effect of the new downtown residents is something still on the horizon."

"'The major ones aren't built yet, so I don't know how that will be,' (retailer) Denise Rush said. 'I hope it will be good.'"

"Debbie Branby, VP of the California Avenue Merchants Association, says she hopes the new residents and the retailers feed off each other, Branby envisions California Avenue being something similar to some of the more quaint neighborhoods in San Francisco."

The Review Journal from Las Vegas. "Many homeowners in Las Vegas are 'upside down' on their home mortgages, owing more than their home is worth, largely because lenders came to rely on inexperienced appraisers who predicated their business on speed and fees in the past few years, a local real estate appraiser said."

"Lender pressure, a major problem in the residential field, has been passed on to the homeowner in some markets, said Ronald James, president of the Las Vegas chapter of the Appraisal Institute."

"'We are seeing assignments where the home is not worth what was paid within the past two years, or refinanced for,' James said. 'In that case, there's no equity. That's how a person ends up upside down.'"

"James looked specifically at new housing developments in the northwest valley. People who bought there two years ago are now finding they can't sell those homes for what they owe, he said. One person bought a home for $460,000 and added a $40,000 swimming pool. Even if he finds a buyer at $500,000, after he pays broker commissions, transfer taxes and legal fees, he's still 'behind the eight-ball,' James said."

"'The market's not there,' he said. 'We as appraisers don't determine value. It's the market.'"

"Observers say some people may have taken a risk by purchasing more house than they could afford simply because they were offered creative financing, a danger for those who bought at the peak of the real estate bubble."

"'I predict that things will be bad in Reno, where we have 6,000 houses for sale with less than 500,000 people,' retired investor Gary Anderson said. 'We already have a disaster. Add to this mess mortgage and appraisal fraud, the huge amount (of equity) people have taken out of their homes for cars and boats and tightening of lending standards and you have a disaster waiting to happen.'"

"The median price of a new home fell to $329,897 in August from $337,272 in July. SalesTraq President Larry Murphy said new prices are being propped up by $20,000 to $40,000 in incentives and upgrades offered by home builders. Those incentives must be factored into the true value of a house, appraiser James said."

"'According to Fannie Mae, you have to deduct dollar-for-dollar concessions,' he said. 'All the guidelines say that all appraisals are a reflection of actual cash value, the cash that goes in the seller's pocket. If it's a $100,000 home and he gives $10,000 in concessions, the value of the house is $90,000.'"

"(Small mortgage brokers) 'make their money off of points, passing the loans on to major lenders,' James said. 'They're the ones pushing it. That's how they make their existence.' Mitch Ohlbaum, principal of Legend Mortgage in Los Angeles, said mortgage brokers aren't the only 'pushing' force. On the refinance side, homeowners are pushing to get that equity line and make the deal work, he said."

"'On the purchase side, you have Realtors pushing because their business is down and they're starving. There (are) 500,000 starving Realtors in California,' Ohlbaum said."

"Glenn Goodman has had his Las Vegas home on the market since March and eventually lowered the price to $379,000 from $430,000. Interesting, he said, that he now has in his possession an offer for the home at $460,000. 'The buyer wants us to give her $57,000 cash at the close of escrow. Obviously this buyer will then just walk away from the house, leaving it to be foreclosed upon,' Goodman said. 'It smells like fraud all over it. The Realtor's got to be in on it.'"