So whats going one with RE in Arizona?

[Rich Hupper]

How are property values maintaining with all the illegal immigration?

[Ron Nawrocki]

Since June, after the buyer tax credits, the number of listings has risen, pendings have dropped, and sales have slowed. Prices are not yet slipping, but they will be next to be impacted.

The Cromford Report has done a very credible analysis of the impacts of the immigration law, and there is solid evidence of an exodus of immigrants, we can only assume most are illegal, but many are likely legal but relatives and friends are impacted.

The bigger problem is still the banks. They are still not lending (due to their weak balance sheets) and continue to dump properties at far below any rational market price. Weiss ranking has 27 of 44 AZ banks at D+ or lower rating. Both with an F rating already taken over.

Once the banks agree to implement the TACT Program on the pilot program we started in AZ, I would expect the sales to jump, and prices to increase very quickly. We still believe that is needed to avoid the situation from getting far worse.