The January sales numbers are out for Arizona. "As the new year began, the local resale housing market continued to slip with 4,520 sales recorded in January. This is down from the 4,620 sales of December 2006 and the 5,260 recordings of a year ago. This is the lowest monthly level for January since 4,220 sales were reported in 2003, which was the year that the hyper-market began in the local area."

"For January 2007, 15 percent of all recorded sales were for homes priced from $125,000 to $199,999, 43 percent for $200,000 to $299,999 and 39 percent for homes priced more than $300,000."

"Last year, the distribution was 20 percent of all recorded sales were for homes priced from $125,000 to $199,999, 40 percent for $200,000 to $299,999 and 36 percent for homes priced more than $300,000. The increase in the higher price levels demonstrates how the move-up market tends to become more obvious in a slowing market. Several areas are continuing to show declining price activity."

The Arizona Republic. "Many of the people in Arizona who help home buyers finance what is often the biggest purchase of their lives are not licensed. It's estimated that there are as many as 18,000 unlicensed people taking mortgage applications, negotiating rates and getting loan commissions statewide."

"But things could change. If House Bill 2320 is passed, it will require the licensing of most of Arizona's mortgage loan officers and originators and bring more accountability to the industry."

"Kelly Lewan recently bought a home in north Phoenix's Tatum Ranch. She secured a loan with a 9 percent interest rate and a promise that she could refinance in a few months and cut her payment. She even paid off a prepayment penalty on the loan when she closed."

"Now, Lewan is struggling to make her monthly payment, and her mortgage agent isn't returning her calls."

"'There are loan officers in Arizona who aren't educated on the business. They make mistakes and put consumers in the wrong loans. And some are committing fraud,' said Stan Lund, president-elect of the Arizona Association of Mortgage Brokers."

"'We want to regulate anyone who is soliciting loans and getting commissions,' said Felecia Rotellini, superintendent of the state Department of Financial Institutions. She recently led efforts to start a statewide mortgage fraud task force to tackle a cash-back scam that involves obtaining a mortgage for more than a home is worth and pocketing the extra money."

"'The bad mortgage brokers who can't pass tests in other states have gone to Arizona, and some of them couldn't get licenses because they have criminal records,' said Richard Hagar, a Washington appraiser who helped that state crack down on fraud."

"'I know of mortgage people working out of their bedrooms and selling stereos on the side. They got into the business six months ago and don't know a lot about it,' said Rick Allen, a branch manager with (a) Valley mortgage firm. 'But the big lenders who are exempt from the legislation are also hiring people without any experience, and those people can also do bad loans.'"

"Lewan said she thought everything was on the up and up when her Valley mortgage officer said she could get a $310,000 loan for a $299,000 home. She said he told her the extra $11,000 could be applied to her debt and she could quickly refinance to get a better loan with a lower rate because her credit record would improve."

"But she said most of the $11,000 went to the mortgage broker, and he won't return her calls about the money or help her refinance to reduce her $2,400 monthly payment. 'I called his boss and got nowhere, and neither my broker or his boss are licensed,' said Lewan. 'I trusted him, and now I can't make my house payment and had no idea getting money back was part of a scam.'"

The Review Journal from Nevada. "The inventory of luxury condominium units for sale and under construction in Las Vegas far exceeds demand, local research firm Applied Analysis concluded in its fourth-quarter condo market report."

"There is insufficient market demand to absorb all of the units in the development pipeline, Applied Analysis principal Brian Gordon said. Potential inventory of 98,432 units includes 57,999 planned or proposed units, 3,889 existing units and 11,124 units under construction."

"'Obviously the supply side of the equation continues to increase as far as the number of potential units,' Gordon said."

"Gordon estimates that 18,500 units will finish construction by the end of 2010. It's not likely that the feverish sales volume reported by early developers will be sustained in the near term, he said."

"'From the demand side, we look at sales activity and pricing,' Gordon said. 'The number of units is off the feverish pace of 2004 and the first half of '05 as the investment component of buyers has dropped off dramatically."

"The number of units available in the existing resale inventory was 557 at the end of the year, with an average asking price of $861,000, or $639 a square foot, Applied Analysis reported."

"Jeremy Aguero, principal of Applied Analysis, cautioned that up to 60 percent of luxury condo units that close escrow could enter the market during the next 36 months in the form of resales."