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The first article, Valley new home market shows signs of stabilizing, from the East Valley Tribune, reports that following a year of slumping sales, the Valley's new home market is expected to stabilize in 2007 as builders continue to get rid of excess inventory. "2006 activity will cause the industry to pause and recognize that housing in this market area has to be affordable," said RL Brown, publisher of the Phoenix Housing Market Letter. The dramatic run up in prices during last year's housing frenzy was not sustainable, he said. Home sellers will need to price homes according to today's market or withdraw their listings. Builders must be more realistic if they plan on staying in business, Brown added. The median price of a new home in the Valley was $285,000 in December, down 5 percent from December 2005 but up 8.5 percent from January 2006. Prices should begin to stabilize to a more traditional 4 percent to 5 percent rate of appreciation, he said, adding that new home permits should be in the low 40,000's.

http://www.eastvalleytribune.com/index.php?sty=83184