by Calculated Risk on 6/18/2006 10:38:00 PM

The Arizona Republic reports: How low will it go?

Greed drove metropolitan Phoenix's home prices and sales to new records in 2005. Fear is driving the market this year.
...
"There's a psychological umbrella of fear in Phoenix's housing market now," said Tim Sullivan, a national housing analyst with San Diego-based Sullivan Group. "Buyers are uncertain."
...
With the housing industry accounting for at least one of every three dollars generated in the Valley's economy, any slowdown will hurt. Consumers will be particularly vulnerable: Analysts say the demand for Valley homes and housing prices both were hyperinflated by 25 to 30 percent last year, mostly because of investors.

An excellent article.

"My sense is the worst is behind us, and the housing market will have stabilized with smaller jumps in listings and more steady sales by October," said John Foltz, president of Realty Executives.

Maybe. But I think this is just the beginning ...