Valley Tackles Cooling Market...

Valley tackles cooling market, reports that Metro Phoenix's housing market had big gains in the first half of 2005, but the market started showing signs of cooling in September, and by October, prices had dipped slightly. Increases of 30 to 50 percent were common in some zip codes as Metro Phoenix led the nation in percentage gain of housing price. The slowing has continued this year with resale listings exceeding 30,000 in January, nearly nine times the level for January 2005. Selling time has increased from 5 1/2 days to 49. Sellers are frustrated because they are getting few offers, and many are cutting prices. Most real estate watchers say the Valley's housing market is only reverting back to a stable one after last years frenzy. Jay Butler, head of the Arizona Real Estate Center at ASU says the housing market needs to "cool down to sustain the appreciation it gained last year. I wouldn't be surprised to see prices fall this year."