Greed is out and fear is in when it comes to Tucson's housing market

Funny, the author here wants to make a point - that the bottom has fallen out of the market. But then what does he do (like most other lazy reporters)? He goes out and interviews builders. Gee, what are they going to say to a reporter - the truth? Doubt it. Here are some highlights though from the imploding Tucson joke of a market:

The psychology of the market has changed significantly from a year ago, when speculators and investors, primarily from California, descended on Arizona like locusts, buying up homes and flipping them to score instant profit.

Fear didn't exist in the market then, only greed. Times have changed.

Real estate speculators and investors have headed east into New Mexico and Texas. Others have shifted their investments to commodities such as copper, gold and oil and are now riding that crest.

While Tucson's housing market is cooling, the market in Phoenix is in the deep freeze. KB Homes and Fulton Homes have each laid off workers in the Valley of the Sun, where the inventory of unsold homes is piling up.

Vest said housing prices in Phoenix, which was hit even harder than Tucson by last year's speculative fever, are tumbling. He said median home prices in the capital city have fallen from a high of $350,000 to about $300,000.

"The frenzy is gone," Vest said. "The scramble to buy and get in on the action is gone. Investors and speculators have retreated from the market. What that means is, the market is returning to normal."