The Daily Times reports from New Mexico. "The San Juan County real estate market continues to be its own animal; active, healthy and stabilizing. That's not, however, to say it's an ideal market. 'Listings are probably up by about 25 percent,' said Elizabeth Tafoya, president of San Juan County Board of Realtors. 'It's the most I've ever seen. Today there are 12 new listings, and we're averaging at least 10 a day.'"

"Tafoya said quite a few sellers are dropping their prices by as much as $20,000 in the hope of attracting buyers. 'Prices are coming down,' she said. 'People want to unload their homes and get into a nicer place.'"

"Along with the high volume of sales is a growing number of foreclosures, Tafoya said. Tafoya said it's the highest number she has seen this year. 'I've seen eight of them,' she said. 'My sellers can't make their payments. They get in, they refinance and they get in over their heads.'"

"Two changes may be contributing to the increased number of failed transactions, she said. One is the AmeriDream program run through the Federal Home Administration, which allows sellers to contribute to their buyers' down payments."

"'If they don't have any money of their own in the home, do you think they care very much if they lose it?' Tafoya questioned."

Your West Valley reports from Arizona. "The Valley's median home price dropped to $210,000 in April, compared with $265,000 a year ago. That's the lowest median recorded since February 2005 at $200,000, an Arizona State University report shows. Year-to-date through April, sales totaled 16,975, compared with 19,045 last year"

"The Sun City median sales price decreased to $176,500 from $210,000. Resale activity in Sun City West increased from 40 to 50 sales, and the price decline was less severe than in Sun City - $222,000 to $205,000."

"While home sales in Surprise were stronger than they have been in months, sellers took a hit in the pocketbook as the median price plunged from $246,060 to $200,250. Sales in El Mirage increased from 55 to 85 and, like Surprise, sales prices plummeted, $199,000 to $140,170."

"In Glendale, sales increased from 330 to 385, and prices dropped more than $50,000 per sale, $245,000 to $189,000."

"The beleaguered economy continues to play a role, however, in some individuals' reluctance to buy, said Jay Butler, who heads up ASU's Realty Studies department. People are worried about getting laid off, salary cutbacks, high gas prices and other costs, he said."

"They're saying, 'Now may be a great time to buy, but maybe we need to be a little bit more cautious,' Butler said."

The East Valley Tribune in Arizona. "Population growth in the Valley appears to have slowed to the lowest rate in at least 35 years, and maybe at any time since the Anasazi civilization flourished in the Southwest, according to a prominent economic analyst."

"Peter Ewen, chief economist for Arizona Public Service Co., told the Economic Club of Phoenix on Tuesday he was basing that assessment on a steep decline in the pace of new residential electric hookups in the utility’s service area."

"'Growth is to Phoenix what the auto industry is to Detroit,' he said."

"Ewen said the supply of unoccupied housing units is also continuing to rise because construction is still outpacing demand. He said there appears to be 25,000 unoccupied units in APS’ service territory, based on a comparison of building permits with new hookups, and there could be 60,000 units if Salt River Project’s service area and Pinal County are included."

"'Just for our territory, this number represents a 30-month supply of vacant housing relative to current growth rates,' he said."

The Arizona Republic. "More than a dozen wannabe homeowners are camped out in northeastern Mesa for a chance to buy a Blandford Home in one of the last open patches of pristine desert in the area."

"Potential buyers must wait at the home sites with their numbers or have a representative wait for them or risk losing their places in line. 'People stand in line for (Sony) Play Station II,' said Scott Needham, a 27-year-old first-time homebuyer."

"'And a home is a much bigger, better investment,' added Tim Pinosonneault, who is holding the No. 2 position to Needham's No. 1."

"The two are among the first waiting till 9 a.m. Saturday to buy the first homes in the 1,200-home master planned development."

"The developer plans to release at least 75 home sites Saturday morning and possibly more 'if there's enough latent demand,' said Joannie Flatt, a spokeswoman for the development. The homes range from $239,950 to $790,950 depending on the model, location and square footage."

"'I guarantee you those prices are not coming down,' she said. 'The latent demand for homes in Mountain Bridge is quite likely huge.'"

The Review Journal from Nevada. "Clark County had 4,426 preforeclosures in April, more than double the 2,029 preforeclosures in the same month a year ago. The number is down from a record 6,152 preforeclosures in March."

"REOs, or real estate owned by the lender through foreclosure, declined to 1,911 in April, compared with 1,937 in March."

"Thomas Love, broker in Las Vegas, said he put about a half-dozen foreclosed properties in escrow in April after closing none in March. 'We can't get them to close,' Love said. 'The banks are so slow to act that buyers go down the street to another bank-owned home that's a better deal, all because of the lack of action that banks take.'"

"The inventory of bank-owned properties in Las Vegas came about by investors hoping to jump on the 'appreciation train,' which has virtually stopped in the lower- to middle-housing market, Love said."

The Las Vegas Business Press from Nevada. "A souring economy and a housing market downturn helped lower vacant valley land values in the first quarter of 2008, reports Applied Analysis. Median vacant land values were $598,700 per acre at the end of March, marking a 24.6 percent drop from a year ago."

"'The first quarter vacant land valuations reflect the impacts of the economic slowdown that was prevalent throughout most of 2007,' Applied Analysis principal Brian Gordon said. 'The number of properties being sold has reached a new low, which has the potential to place further downward pressure on pricing.'"

"Only 90 parcels totaling 252 acres changed hands in the first quarter. It marks a 71.6 percent year-to-year decline in activity."

"'Those with development plans are now questioning the feasibility of their projects as vacancy rates are increasing and rent growth is essentially flat,' said Applied Analysis principal Jeremy Aguero. 'On the residential side, reduced sale prices and carrying costs on underperforming communities are shrinking profits.'"

The Reno Gazette Journal from Nevada. "A penalty imposed on properties in areas considered to be 'declining markets,' such as Reno and Sparks, can result in a 10 percent down payment becoming 15 percent."

"'The days of simply stating your income are over,' said B.J. Perez, mortgage broker in Sparks. 'You have to be able to prove income and prove that you have money in the bank.'"

"'When borrowing becomes too easy and you have enough people buying houses beyond what they can afford, then that can put the system in trouble, which is exactly what happened with the housing bubble,' Mark Pingle, a professor of economics at the University of Nevada, Reno."

"Lenders now 'go through everything with a fine-tooth comb,' requiring such documents as bank statements, pay stubs, employment verification, even tax returns, said Ken Wiseman, broker-owner of Reno Rancho Realty."

"Appraisals have especially become a sticking point. 'Underwriters are scrutinizing appraisals much more,' said Kim Fleischmann, senior loan officer of Indymac Bank's Reno office. 'They're asking for additional comparable sales in the neighborhood, additional listings. And you're seeing that across the board.'"

"Instead of the traditional one to three comparable sales, underwriters are now asking for four to five comparables, plus one or two property listings, Fleischmann said. Underwriters are also more apt to request changes on appraisals, Wiseman said."

"'Banks are just picking apart the appraisals on houses right now,' Wiseman said. 'I've seen several cases where the bank doesn't accept the appraisal and the loan just tanks.'"

"Another increasingly popular option involves 'down payment assistance' programs such as those offered by Nehemiah, AmeriDream and the Nevada Rural Housing Authority."

"'Are we creating another mortgage crisis on a smaller scale?' Wiseman said. 'At the same time, about 50 percent of my current deals would never happen (if it weren't for down payment assistance programs). That means we would see an even further decrease in home values because we can't get rid of housing inventory.'"

"'It's not like banks aren't lending money, they're not just giving it away,' Perez said. 'Back during the housing bubble, people bought multiple houses and just made up anything you could imagine in their applications.'"

"'Now, lenders want proof of income, proof of how much money you have and proof of where that money is coming from. Now, they're only making loans that make sense,' he said."

The Daily Herald from Utah. "Utah County saw a dramatic slowdown in new home construction in the first quarter from a year ago, as skittish builders took out fewer permits due to a severe glut of unsold inventory and weak new home sales, according to a local study released Wednesday."

"New home permits in Utah County plunged 72 percent to 408 in the first quarter, down from 1,458 a year ago, while Summit county saw a 77 percent drop in new home permits. Statewide, new home building activity is declining at a record-breaking pace not seen since the '80s."

"'This is more than just a correction for what went on during the housing boom. It's a serious contraction caused by exogenous factors including the subprime lending crisis, which affected 15 percent to 20 percent of all mortgage loan originations in Utah,' said James Wood, director of the University of Utah's Bureau of Economic and Business Research."

"'Utah County went up the most. So it had the most to fall,' Wood said. In 2007, builders took out 3,500 new home permits in Utah County, where 25 percent of all new homes in the state were built."

"According to Newreach, the number of unsold new homes and condominiums in Utah County skyrocketed 275 percent to 982 in the first quarter from a year ago. Lehi led the state for the second consecutive quarter with the greatest number of unsold new homes, accounting for a whopping 263 units, followed closely by Saratoga Springs with 204 units and Eagle Mountain with 157 units."

"In the first quarter, the number of default notices nearly doubled to 613 in Utah County, from 365 a year ago, according to Newreach. About 90 percent of homes under default notices tend to go into foreclosure, the company found."

"If the housing slowdown continues to worsen, Jason Eldredge, executive VP of sales for Newreach, sees the possibility of more consolidation in the building industry locally and nationally."

"'Builders that are holding expensive lot inventory priced at $100,000 and above, or expensive home inventory of $400,000 and above will either have to reduce those prices or consolidate if they can't get rid of the inventory,' he said."

The Deseret News from Utah. "Jeff Atkinson, a general contractor from Utah County, said that because of the sharp downturn, he and many others in the industry are finding themselves unemployed, with few prospects."

"'I'm looking for work right now,' he said. 'I don't have a job. My company is gone. I've lost everything. Most of my subcontractors, and some I have never even heard of, call me on a daily basis looking for work.'"

"Atkinson, who had been a general contractor for the past 10 years, said that until last summer, he and his partner built between 20 and 40 houses a year. Since then, he said, he has lost his personal life savings and maxed out his home-equity credit line to cover interest costs for the homes he and his partner had built, because those homes have not sold."

"Meanwhile, he has been unable to find a job of any kind in the construction industry. He said his partner is in a similar predicament."

"Atkinson said he and his former partner are still trying to sell three newly built homes for up to $120,000 below appraised value, just to cut their losses. 'We keep getting killed from interest, and there comes a point where you just run out of money, and you can't do it any more,' Atkinson said."

"Atkinson worries he may now be forced to find another line of work. 'I've been in the building industry my entire life, and I would build homes forever if I could,' he said. 'But I honestly don't see an end to this for quite a while. I think it's just going to get worse.'"