A report from the Arizona Republic. "Scottsdale-based Meritage Homes is the latest hit by the slowing housing market. Arizona's only publicly traded home builder must write off $100 million on land and operations after a second quarter in which home orders fell 28 percent and new-home cancellations climbed to 37 percent, according to preliminary numbers."

"Housing is Arizona's biggest industry, and the slowdown in building ripples throughout the economy from job losses at contracting firms to weaker sales at furniture stores. RL Brown, publisher of the Phoenix Housing Market Letter, is downgrading his earlier forecast for home building. In January, he predicted 41,000 new homes could go up Valley-wide. That compares with 42,460 new-home permits issued in 2006 and a record 63,570 in 2005."

"New-home cancellations have left the Valley's housing market with at least 20,000 homes built but unsold. Builders have offered hefty incentives of $50,000 and more to sell the houses, but many potential buyers can't sell their existing homes."

"The result is a glut of homes for sale that is putting pressure on prices and dragging down the market."

"'Weak demand and high inventory levels have increased competition among home builders, pressuring margins, despite reductions in new-home starts, lot supplies and operating costs,' Meritage CEO Steve Hilton said."

"In 2005, investors inflated demand for new homes. Builders rushed to buy land, often paying top dollar, and construct homes fast enough to keep up with demand. But prices peaked in many speculator-driven markets like Southern California, Las Vegas, Phoenix and Florida, and demand plummeted."

"The value of some land bought during the market frenzy has fallen since then, which accounts for a lot of the recent home builder write-offs."

The Reno Gazette Journal from Nevada. "It was less than two years ago that it seemed a downtown condo project was being announced each day. But with a slowing housing market, the brakes have been put on such vertical projects as Arterra and Waterfront Towers."

"Portland, Ore.-based Capstone Partners announced last week that it is putting a hold on its plans for Arterra The Waterfront Towers has also been put on hold as the developers of that project redesign their initial plans."

"The developers of Wingfield Towers have filed for bankruptcy protection in hopes of securing financing."

"Fernando Leal, developer of The Montage, an ongoing conversion project, who has expressed doubts about non-conversion projects in the past, said the slowing market for condos still is better than that of single-family homes because, unlike the single-family market, the amount of unsold inventory actually is decreasing."

"'Demand for every developer has slowed to what previously would have been considered 'normal' and part of the real estate cycle,' Leal said. 'However, unlike single-family homes, the supply of downtown condos has contracted immensely.'"

In Business Las Vegas from Nevada. "Las Vegas resale home prices may be falling but national housing expert John Burns said the median price in the valley needs to drop by 33 percent or nearly $101,000 to match up with income levels that residents can afford."

"Burns lists the median price of resale homes at $305,975. By his calculation, the price would need to drop to $205,000 for housing costs to return to the market's typical ratio of housing costs to income."

"Burns admits that's not going to happen in Las Vegas and some of other overpriced markets unless mortgage rates spike or the economy has a prolonged recession."

"But while a 25 percent or greater decline in resale homes is unlikely, a 'significant correction is not entirely out of the question. 'That's possible if, one, homebuilders drop prices (including incentives) 20 percent below where they would have been selling these homes two years ago and, two, a 20 percent price drop returns prices to levels similar to those in early 2005, he said."

"Including incentives, new-home prices are down more than 10 percent from two years ago, according to Las Vegas housing analyst Dennis Smith."

"Some speculators who helped drive up the prices made a lot of money but others are in the process of losing it all, Burns said."

"In his latest newsletter about the Las Vegas housing market, Smith, president of HomeBuilders Research, said he has the definition to describe the current state of the market; 'a temporary recession.'"

"The question of how long 'temporary' is is unknown, Smith said. He said anyone that suggests it will be over by early 2008 is basing their predictions on 'hope instead of facts.'"

"Smith said for the short term, the market can't handle the large inventory of resale homes and other homeowners who want to be sellers once the market improves. Adding in a large number of potential buyers who have been removed from the market because of changing lending requirements only slows the recovery, he said."

"A key is what happens in California since about 35 percent of Las Vegas' new residents come from the Golden State, he said. That market has had some softening and observers predict resale prices have to come down because inventory is too high, he said."

A report from the Coloradoan. "With half the year already on the books, Larimer County's economy is chugging on with little noticeable difference from the first quarter to the second."

"'We're not overheating but we don't seem to be heading in the tank,' said regional economist Martin Shields, who gave the local economy a B grade for the second quarter, which ended June 30."

"That's slightly less than the B+ Shields rated the first quarter, mainly because of the continued slump in the housing market. Rising interest rates and an overbuilt single-family home market are tamping down prices creating a buyers' market for most segments."

"And tightening credit standards in the wake of rampant foreclosures are pushing first-time homebuyers out of the market."

"With only small pockets of vitality, the housing market gives realtors little reason for optimism in the second quarter. Supply continues to outpace demand as foreclosed homes flood an already glutted market."

"Only correctly priced homes in outstanding condition are moving," said Realtor Gene Vaughan. 'But there is a lot of inventory on the market.'"

"The more expensive the home, the longer it is taking to sell. There's a seven-year supply of homes in the million-dollar range on the market now, longtime Fort Collins realtor said. That means it would take seven years to sell all the current listings."

"'We still have a surplus of new units, which is keeping prices low,' Shields said."

"The slump forced Loveland officials to halve their forecast for building permits this year and next. 'We're expecting housing construction will be slow though 2008,' said Alan Krcmarik, Loveland's director of finance. 'There are still a lot of foreclosures out there.'"

"The surplus creates a buyer's market for those looking for good value. 'Buyers are still in a pretty good position except for interest rates,' which jumped half a point recently, Shields said."

"'People need to make sure their homes are in very good shape and they need to be realistic about its value,' Vaughan said. 'Just because we need a certain value out of the house doesn't mean it's worth it.'"

"As banks and lending companies remain jittery over the high rate of foreclosures, Shields said, some first-time homebuyers are getting frozen out of the market. 'First-time buyers are being scrutinized a lot more and probably over-scrutinized because of trepidation among lenders. A lot of people are having more problems than they should.'"