The New York Times reports on Arizona. "The number of unsold homes in the Phoenix area has soared to almost 46,000 from just a few thousand in early 2005. And builders are pulling back as fast as they can. They have little choice. Sales cancellations among big builders, not just here but around the country, are running as high as 40 percent, double the rate a year ago."

"Across the nation, new-home sales are down by more than 20 percent from their peak last year. Prices fell almost 10 percent in September from a year ago. And that reported drop does not take into account the extras that builders are throwing in free or at steep discounts to lure buyers, which means that effective prices are even lower."

"Local officials issued 60,000 single-family permits in the metropolitan area in 2005, twice the number issued in 2000. But in the first nine months of this year, permits fell by 27 percent from the same period last year. And builders are suddenly refusing to pay the asking prices for developable land."

"The influx of buyers from California, many of them individual speculators, was so strong that builders overestimated demand and constructed a lot more homes than there were people wanting to live in them, said John Burns, a real estate consultant in Irvine, Calif. He noted that investors bought roughly a third of homes sold in the Phoenix area last year, according to mortgage application data."

"Perhaps an early indication of things to come can be found in what has happened with land sales. In September, the Arizona State Land Department postponed the auction of two parcels of prime residential land north of downtown Phoenix after builders said the starting levels were too high."

"Thomas Caldwell and his partner now own about 30 homes each and manage a total of 2,200 properties for clients, many in California. Asked what he thought of the contention that investors were to blame for the glut of homes on the market, Mr. Caldwell acknowledges 'there was some fluff.'"

"But smart investors, he argued, were absorbing the surplus by buying up homes that builders were now unloading at bargain prices, some for as little as $60 to $80 a square foot, which local experts say is barely enough to cover construction costs let alone land expenses."

The Arizona Republic. "The number of Valley homes for sale, breaks down to 12 homes for every home buyer in the market now, according to research from (realtor) Jay Haugen. At the end of September, the number of homes for sale was hovering near an all-time high of about 55,300."

"Pinal County has been the hot spot for home-building in the Valley this year. Through September, 13,000 houses were started in the southeastern Valley suburb, according to Metrostudy. But resales in Pinal fell to 850 during the third quarter, according to ASU. More than 1,100 existing homes changed hands in the area during both the first and second quarters of 2006."

"More than 4,500 new homes, complete or nearly finished, sit unsold in Valley subdivisions, Belfiore Real Estate Consulting says. Demand for unreasonably priced homes or homes far from jobs is 'abysmal' now, analyst John Burns writes."

"Arizona housing analyst RL Brown still has a 'code red' on his monthly report and says, 'The end (of the housing market's slowdown) is not yet in sight, and the market is still seeking the bottom.'"

The Review Journal from Las Vegas. "The number of homes sold in October dropped 34.4 percent from a year ago to 1,689, the 13th straight month of declining year-over-year sales, the Greater Las Vegas Association of Realtors reported Monday."

"Inventory of homes for sale continues to climb at 23,474, a 53.8 percent increase from October 2005. More than 5,000 homes were added to the MLS during the month."

"Association President Linda Rheinberger said she sees positive signs in the emerging housing categories of mid-rise and mixed-use developments. 'For those who want that lifestyle, they're buying them, but not at a frenetic pace,' she said."

"Real estate investors have backed off from buying commercial property in Las Vegas because prices are generally perceived as being overvalued, an investment executive said. Investment broker Charles Moore said he had twice as many buyers looking at the market in May and June of 2005 than he has today."

"'Landlords and investors should be aware of their exposure to housing-related tenants in their properties and their submarkets and adjust their management and leasing plans accordingly,' said Joseph Kupiec, managing director for Grubb & Ellis in Las Vegas."

"Las Vegas Sands Corp. is the latest player in the Strip's growing high-rise condominium market. The casino operator will ask the Clark County Commission for approval to build a 632-foot tower that would allow for 849 condominiums. Each unit would include a kitchen area."

"Las Vegas Sands Executive Vice President Brad Stone said the condominium tower would have 370 'ultra-luxury' units and the building would be at least '50 stories.'"

"Deutsche Bank gaming analyst Bill Lerner said Monday the planned Las Vegas Sands project can't be viewed as part of a potentially oversaturated Las Vegas high-rise residential market."

In Business Las Vegas. "Larry Murphy of SalesTraq and Steve Bottfeld, who monitor housing trends in the Las Vegas Valley, handed out their latest predictions at their quarterly Crystal Ball seminar. Bottfeld and Murphy used the presentation to debunk what they said are myths about the Las Vegas housing industry."

"One of those myths is that there is no affordable housing, Bottfeld said. He said 1,800 homes listed for sale are priced at $200,000 or less, which he said falls in the affordable category."

"Bottfeld criticized national media publications for its portrayal of the Las Vegas housing industry as having falling prices and resembling a ghost town. He said there's nothing wrong with having so many homes vacant."

"'Investors are testing to market to see if they will get their price, and if not, they will rent it,' Bottfeld said."

"Bottfeld said he doesn't believe the increasing number of homes entering foreclosure signifies a problem. He said a change in laws that makes it more difficult to declare bankruptcy is the likely reason for more foreclosures."

"Bottfeld predicted the housing market will be ready for another boom by the end of 2007. 'We have the same conditions that formed before the previous boom,' Bottfeld said."

"Michael DeLew, a senior VP of the industrial division of Colliers said that a slowdown is evident by builders pulling out of land deals, leaving millions of dollars on the table. Why should builders carry the interest on the land when they can get it in a year or longer at the same price and maybe lower? he asked."