The Sierra Vista Herald reports from Arizona. "Despite the perception of the current real estate market, a decade into the future, people will look back and kick themselves for not buying a home this year. So says Lawrence Yun, chief economist of the National Association of Realtors, speaking at the Tucson Association of Realtors’ 2008 Forecast seminar. 'This is a great market to buy in and a great time to buy,' Yun said. 'There seems to be an irrational pessimistic outlook on the market fed by negative stories from the media.'"

"The audience of about 325 real estate agents, brokers, developers and builders gave a loud cheer and applause."

"'It is a fact that (2007) is the first time home appreciation was negative since the Great Depression,' he said. 'But considering in Tucson over this boom we saw 50 percent appreciation, then no growth in 2006 and what we figure to be about 2 percent depreciation of values in 2007, it is like taking 50 steps forward and two steps back for most homeowners. Those who bought in the last year or two didn’t fare as well."

"Yun said there was no way that growth of that size was going to be sustainable for longer than it did."

"'We need to get rid of the excess,' he said. 'But when reports come out that the Fed might cut rates in January, and then more in March and maybe in May too, people are going to wait and wait to buy. We are fulfilling our own prophesy.'"

"Realtors just have to get back to work, said Tucson Association of Realtors President Tom Sloyan. 'We are not in a down year,' he said. 'We are in a normal year and just have to get back to work. The free ride is over.'"

The Arizona Daily Star. "December proved to be 2007's slowest month for real estate sales, according to figures released today by the Tucson Association of Realtors MLS. For the year, sales totaled 12,109, down about 18 percent from 2006."

"The number of active listings in December, 8,708, was up slightly from the same month a year ago."

From KVOA News 4. "You've probably seen the 'For Sale' signs in front yard for months on end as homeowners lower their prices. That has been the real estate story here in Tucson for the past year."

"Jeff Reed has watched the Tucson housing market go through different phases. 'Basically for the past 15 years, I've been buying, fixing, and reselling homes in Tucson.' Reed says these days, 'It's just been really slow trying to get a house closed. They're just no showings. I've got a house for sale in Green Valley and I'm lucky if I get one person to go through it a month.'"

The Arizona Republic. "The Valley's overall housing market ended 2007 listlessly, and the Southeast Valley wasn't any spunkier."

"Chandler and Tempe held up best, both seeing their median home price decline 3 percent. Gilbert and Ahwatukee fared worst among major Southeast Valley communities, both seeing a decline of about 10 percent. Mesa took the biggest dip in the number of homes sold, 26 percent fewer in 2007 than 2006."

"'There's a feeling that the market hasn't bottomed," said Jay Butler, director of Realty Studies at Arizona State University. 'It's sort of the prom date (dilemma): 'I'll wait to say yes and maybe I'll get a better looking girl down the line.' But you usually don't.'"

"Last month was the weakest for sales in nearly a decade. Valley-wide, 3,290 homes were sold compared with 4,620 in December 2006 and 3,240 in December 1999."

"Butler predicted sales volumes and prices will continue to fall in 2008 but stabilize in 2009. 'People are always asking me when the market is going to recover,' he said. 'The question I ask them is, 'What do you mean by recover?'"

"Investors drove the Valley real estate market to record levels in 2005. Many believe the housing bubble was bound to burst and return to a more normal and sustainable level."

"'Really, the market, if it were following its historical norm, would be in the low 70,000 (resale homes sold a year) instead of being driven by investors looking for their fortune and people getting caught up in the hypermarket,' Butler said."

"The median price of an existing metro-Phoenix home tumbled to $232,000 in December, an 11 percent drop from where prices were at the beginning of 2007."

"December's median home price was the lowest since the spring of 2005. At the time, the speculator-driven housing boom was in full swing and so were bidding wars on Valley homes."

"Experts from the many other parts of the market besides housing convened last week at the Institute of Real Estate Management/Certified Commercial Investment Member economic forecast for Phoenix."

"'The mood about all of the market is cautious and guarded,' said Stanley Paul Cook, the keynote speaker. 'Vacancies across the board from office to apartments are going to rise this year, and sales prices on all those properties are bound to head down.'"

The Arizona Daily Sun. "Despite a claim against it for $1.8 million in unpaid bills, one of Flagstaff's biggest developments expects to begin building its first homes in March. That's according to Clem Stubstad, a spokesman for Presidio in the Pines, which has city approval for 900 housing units...in west Flagstaff."

"He said a slump in the housing market led to 'a cash flow hiccup' that brought construction to a standstill. The planned groundbreaking had been scheduled for 18 months ago."

"But a former contractor, A. Miner Contracting, has brought a $1.8 million lawsuit against the primary developers of the project, Premiere Acquisitions LLC and Luxury Lofts LLC, saying it has not been paid in full."

"He said he was paid about $600,000 for some of the initial work, but he canceled the contract last August after working for months without payment."

"'As the months went on, I realized I wasn't getting paid,' he said. 'We have been going through so many months of 'We're going to have the money on Friday.'"

"Another Presidio-related lawsuit filed in 2005 is still active. A total of 22 people who bought into Presidio in the Pines filed a lawsuit against the builder, claiming the builder was reneging on their contracts and purchase prices."

The News Herald from Arizona. "The ailing housing market ended a painful year with a modest increase in building activity. (Lake Havasu City) issued six single-family building permits in December, the latest in a string of single-digit monthly totals that became commonplace in the just-ended year. The total was up compared to the month before, when the city issued only three single-family building permits."

"Even with the small increase, 2007 was still the second-lowest year on record going back to 1980."

"'This is about as low as you can get,' said Bud Schulz, executive director of the Colorado River Building Industry Association. 'On the positive side, there’s no place to go but up.'"

"Mark Durham, president of the CRBIA, said there was a combination of factors. 'The lenders are tightened up. They’re reviewing their applications a lot more closely,' Durham said. 'Before, you could buy a house for virtually nothing down. Now they’re making sure that you qualify and can make your payments.'"

The Review Journal from Nevada. "The Southern Nevada housing market is continuously evolving. Valley home prices soared in 2005 and sales were recorded in record numbers. Since then, the Southern Nevada housing market has swung in the opposite direction and become a buyer's market."

"With more than 22,000 houses listed for sale on the MLS in December, an influx of foreclosures, a slowing sales pace and tightening of the subprime mortgage lending market, prices of both new and existing homes have decreased."

"The Greater Las Vegas Association of Realtors' most recent sales statistics for December 2007 report the median sales price of a single-family, detached, resale house was $260,000, a 15 percent decrease compared to December 2006."

"The median sales price of an attached, resale condominium/townhome was $185,000, a 5 percent price reduction from the previous December. Of the 879 houses sold in December, 228 were repossessed."

"Devin Reiss, 2007 GLVAR president, described the lowering of home prices as part of a housing cycle. 'Definitely housing has become more affordable. We've gotten back to an affordable price range now. Certainly, we (the GLVAR) have been stressing that this is an opportune time to buy,' Reiss said."

"'This is part of the housing cycle. It is an opportunity cycle right now that buyers should really be capitalizing on before it's too late and they are priced out of their price range again,' he said."

"Sapphire Springs by Richmond American (offered) a 1,136-square-foot, two-bedroom, 21/2-bath home in the northern valley for $153,990. In February 2007, SalesTraq reported the same size of floor plan available at that neighborhood for $198,990. The price reduction in just under one year amounts to 22.6 percent."

"Encantos by Storybook Homes...in the eastern valley...listed a 1,271-square-foot, two-bedroom, 11/2-bath house for $169,965; in February 2007, its lowest-priced floor plan was a 1,199-square-foot home for $199,240."

"Rumors have circulated that sales prices are not necessarily set in stone at some new-home neighborhoods."

"'I've heard quite a few stories with home prices (at new-home neighborhoods) being negotiable...It would be difficult to call it across the board, but I've heard that some builders have been negotiable with their prices. It varies. It certainly doesn't hurt to ask,' Reiss said."

"D.R. Horton Homes, one of the largest new-home builders in the country, recently announced to the Las Vegas brokerage community the release of 500 completed homes. Located in 40 neighborhoods throughout the Las Vegas Valley, these homes are available for immediate purchase and move-in."

"'Our strategy is to be extremely aggressive in 2008,' explains Jeff Ward, director of sales for D.R. Horton."

"The builder has recently lowered the sales price of the 2350 floor plan to below $140 per square foot in some valley locations."

"Themed around the big game, Super Buy Saturday will illuminate the entire array of the completed homes recently released for sale, and the unprecedented pricing now published on the builder's Web site, Ward said. Football legend William 'The Refrigerator' Perry will attend the event and be on hand to autograph memorabilia and take photographs with sports fans."

"With Meritage Homes offering savings of up to $120,000 and interest rates holding low, the time to purchase a home is now, according to Robb Beville, the company's Las Vegas division president."

"'The home-building industry is at a rare point in its history,' Beville said. 'As a rule, mortgage rates are usually down when home prices are high, or mortgage rates are low and housing prices are higher. They rarely happen at the same time.'"

"'Our goal is firm in 2008, to provide the right home, at the right price, in the right location,' he said."

In Business Las Vegas from Nevada. "Las Vegas home prices continued to plummet in December, falling to their lowest level since April 2004, according to statistics released this week by the Greater Las Vegas Association of Realtors."

"The median price of homes on the Multiple Listing Service sold in December was $260,000, down $13,500 or 5 percent from November. Prices are down 15 percent from December 2006, the Realtors group reported. Most listings are existing homes."

"Prices were as high as $315,000 in June 2006, meaning prices have fallen more than 17 percent from that peak."

"Greater Las Vegas Association of Realtors President Patty Kelley said that December may not be a true reflection of the marketplace because of a large number of homes that are vacant and owned by investors, banks and other lenders."

"They sold at deeply discounted prices to get their properties off the books, creating an artificially low median price, she said. Nearly one-third of the 879 homes sold in the region in December were either repossessed or short sales, Kelley said."

"'I believe that percentage may actually be closer to 40 percent of all home sales since banks are under enormous pressure to get these properties off their books,' Kelley said."

"Despite the drop in prices, buyers aren't scooping up the houses. The 879 homes sold in December were 9.2 percent below November and 47 percent below December 2006. 'People buy on the way up, but they don't buy on the way down,' said Larry Murphy, president of SalesTraq. 'They are waiting for it to hit the bottom.'"

"SalesTraq reports 51 percent of the listings on Jan. 1 were vacant homes. Given the limited sales in December, the inventory remains at 21 months despite a reduction in new listings, Murphy said."

The Spectrum from Utah. "Jaime Bundy has waited on the sidelines of St. George's real estate market since May. She and her husband...decided to wait and see if they could get a better deal for a four- to five-bedroom home."

"Her Realtor, Natalie Larsen, showed Bundy one home priced at $279,000. Just months ago the same homeowners were asking for $348,000, Larsen said."

"The average home in Washington County in the third quarter of 2007 sold for $322,687, down from $351,295 in the third quarter of 2006, according to the Utah Board of Realtors Web site."

"In Iron County, the average home price was $210,939 in the third quarter of 2007. In the third quarter of 2006, the average home sold for $247,096, according to the site."

"The house Bundy inspected was built in 2005. Back then, St. George's real estate market was a whole different game. 'It was crazy,' Larsen said. 'You would be standing in a house, and by the time you got back to the office, it would already have an accepted offer.'"

"Vardell Curtis, CEO for the Washington County Board of Realtors, said there was a home-buying frenzy between the first quarter of 2005 and the first quarter of 2006."

"A larger amount of investors came to the area and bought up houses on the market, said Lori Chapman, president of Washington County Board of Realtors. The increase in demand led to a smaller supply, which created a 38.4 percent increase in home appreciation, Curtis said."

"To help feed the frenzy, many builders began developing more housing neighborhoods, Chapman said. Building new housing projects takes time. Chapman said by the time some of the new developments were finished, the housing frenzy had slowed."

"Mortgage rates began to readjust, as well, and new foreclosures and quick sales also added to the market's supply. SGI mortgage broker Scott Gibson said an average of 100 homes in Washington County are given notices of default each month."

"In November, there were 27 months' worth of inventory for sale in Washington County, Curtis said. Curtis said some sellers are frustrated right now because no one appears to be interested in their home. But the reality for many sellers is that the home just isn't priced to sell in the current market."

"'The ship of 2005 has sailed,' Curtis said during a presentation at the Washington County Economic Summit. 'If your home is priced competitively, it's going to sell.'"

"Jaime Bundy is what Chapman would consider an educated buyer who does her homework. On foreclosed homes, Bundy said she researches the remainder of the home loan so she can better estimate a fair price. And after eight months of searching, Bundy said she's ready to make the plunge."

"'I'm so ready to buy,' she said."

"Curtis said he expects more people like the Bundys to begin purchasing homes in the near future, he said. Larsen said she agreed. She said the market is 'just evening itself out.'"

"'Right now, we're having a moment, but it will be OK,' she said."