Sticker Shock Kills Phoenix State Land Sale

No builder or investor was willing to pay the State Land Department's $150 million asking price for a 325-acre parcel of state land near the Loop 101 and Arizona 51 in the Desert Ridge market area. In the past few years, land in Desert Ridge sparked bidding wars as home prices and sales in the area soared.

In 2005, homebuilders went on a buying spree when a record $7.7 billion was spent on residential land across the Valley. But the market has changed dramatically since then. "The real estate market is in transition, and land sales have obviously slowed down," said Mark Winkleman, state land commissioner.

Real estate analysts say the housing market is headed back to 2004's level of sales and price increases. More...