A housing report from the Arizona Republic. "Permits for new-home construction are on the rise in Maricopa and Pinal counties, jumping 26 percent in February compared with the previous month and building on two straight months of gains. The skyrocketing prices of the housing boom scared away buyers and many walked away from contracts, leaving some builders with cancellation rates of 30 to 40 percent. "

"It's unclear exactly how many spec homes are on the market. Some analysts say the number could be more than 10,000."

"Doug Fulton of Fulton Homes hopes the surge in permits isn't just big public home builders cranking up local production so they can book 2007 sales. 'I would like to see permits go down,' he said. 'What are you doing? You are just generating more inventory. I don't like to see permit increases any more than I like to see additional homes listed on the MLS. It's a supply-and-demand issue.'"

"RL Brown's report noted that the number of closed sales was the lowest since May 2003. He said most new houses being sold in the Phoenix area these days are spec homes."

The Explorer News from Arizona. "Like many in the formerly booming real estate market, Bob Bates decided to refinance his family’s 1,300-square-foot Marana home on an adjustable rate mortgage, using the extra cash to pay off vehicles and catch up on bills."

"But when a slew of car accidents and health woes pushed his $33,000 annual income to the wall, the 41-year-old construction worker pursued the familiar option."

"Despite being late on payments at the time, Bates sought out and was approved for his second refinancing last year, during the lending frenzy to those with marginal credit scores."

"'It made sense and I was desperate anyways,' Bates said. 'I was shocked they were even going to do it. If I couldn’t make my payment at $800 a month, what made them think I could afford $1,300 a month?'"

"Bates planned to fix up the 15-year-old cul-de-sac ranch house and sell it within months. Then came a nationwide sea change in the housing industry. Now, months behind on his mortgage, Bates stares down the barrel of foreclosure."

"'Who would’ve thought the market did what it did with houses,' Bates said. 'Nobody’s buying and it’s like, 'Oh Jeez.'"

"Lenders are tightening their standards, which could have ripple effects in the market. Northern Pima County’s new construction market depends heavily on that population and could stand to lose up to 20 percent of its clients, according to David Modisett, who owns a local home financing company."

"Property values across the board could also be jeopardized, as neighborhood prices dip when sellers look to unload discount-rate properties. 'Those areas that have the high foreclosure rates are going to be the ones that have declining values,' Modisett said. 'This next year’s going to be pretty volatile, no question about it.'"

"Long Realty Vice-President Janell Jellison said the public perception of a sour market is creating drag on sales. 'It’s stalling out the market is what it’s doing,' Jellison said. 'Everybody’s sitting there going 'Well, maybe the sky is falling in, so I just won’t do anything.'"

"That mindset is obvious during a drive through many planned subdivisions, including Marana’s Gladden Farms. The community boasts nearly 100 homes for sale, many built on speculation, still waiting, empty of furniture, for their first occupants."

The Benson News from Arizona. "While there may be a national housing slump, local experts believe Benson's housing and land sales have gone from crazy to normal."

"'Land sales have taken sort of a nose dive right now because landowners have priced themselves right out of the market,' said local Broker Mary Ann Scott. 'The market right now is being called a corrective market.'"

"'It was almost like a panic-buying mode in 2005,' she said. 'People were coming in from everywhere and buying whatever they could get their hands on. Compared to prices in California, even the overpriced land looked fabulous to them.'"

"In 2005 and 2006, because Benson's open land became popular for housing developers and investors, undeveloped land was being sold for up to $12,000 an acre. Will White of Arizona Land Advisors in Tucson said prior to the boom, land cost about $4,000 an acre."

"Some of the problems in the market were also caused by investors, broker John Davis said. 'The investors would come in and buy the homes and turn around and sell them,' he said. 'The homebuilder had to start competing with investors. Buyers didn't want to wait six months for their home to be built, so they would buy the one that was ready.'"

"Once the investor inventory decreases, Davis said home sales and construction will continue to go up. 'Sure it's not the crazy free-for-all market anymore, but it's OK. For this area, you could say the market went from incredibly crazy to normal,' he said.'"

The Sun News from New Mexico. "Do you want to buy a home in Las Cruces? The good news is that there are more homes on the market than in years past. Even though 2006 was another record-setting year for home sales in Las Cruces with more than 2,300 homes sold, the first quarter of 2007 reflects a major step back from that pace."

"According to Annette West, a Las Cruces real estate agent, 352 homes have been sold so far this year. Through March of last year, 507 homes had been sold. 'That's a big change in volume,' West said."

"The housing slump reported in other parts of the nation is affecting Las Cruces, experts said. The record-setting pace of the past several years was fueled in part of out-of-town buyers. Many potential newcomers are now having difficulty selling their old house, which makes it difficult for them to buy a new house here."

"Michael Tassler and his wife moved to Las Cruces from Virginia and bought a house last year. 'Our home back there is still on the market,' Tassler said."

"Luckily his wife's company helped with the move and bought the house in Virginia although it remains unsold."

"Tassler said that his home in Virginia is slightly smaller than the one he purchased in Las Cruces, yet it is on the market for significantly more than he paid for his new house. 'Compared to some other markets, the prices are really good here,' he said."

"He said he has acquaintances in California who consider prices in Las Cruces to be 'dirt cheap.'"