State growth in '06 likely to mimic '05...

State growth in '06 likely to mimic '05, from the Arizona Republic, reports that Arizona's economy will grow in 2006 much like it did in 2005 and could even slow a bit, according to economist who spoke at Wednesday's 42nd annual ASU/Bank One Economic Forecast luncheon at the Phoenix Civic Plaza. Growth in Arizona and across the country will be held back by rising energy prices and interest rates, plus a slowing in some housing markets and in consumer spending. But population spikes and a stable housing market in Arizona are expected to offset losses. "It's going to be a year of stable, moderate growth," said Lee McPheters, an associate dean for the W.P. Carey School of Business at ASU. Arizona's cooling housing market was a hot topic Wednesday. McPheters said the market is in for a soft landing, based on research by economist and local real estate investor Elliott Pollack. "Houses are not selling the same day they're listed," McPheters said. "That doesn't mean in any way that the market has loosened up. Houses are still selling very, very quickly." McPheters said job and population growth will continue to drive the housing market in 2006, however the affordability issue is worrisome as wages have not increased as fast as home prices.