It seems speculators hoping to make a quick buck by flipping houses have finally fled the sagging housing market. Sales of investment homes fell 28.9 percent in 2006 to 1.65 million, compared with 2.32 million in 2005, according to a new study by the National Association of Realtors.Nationwide, the typical investment property cost $150,000 in 2006, down from $183,500 in 2005. Local analysts say the rush of investors trying to rid themselves of properties has greatly added to the record number of Valley homes on the market. Many speculators are also likely facing foreclosure, market researchers say.Here are a few more facts from the NAR study:* Last year, investment-home buyers were a median age of 39 and earned an income of $90,250.* Thirty-seven percent of investment homes are in suburbs, 22 percent in rural areas, 18 percent in urban areas and 7 percent in resort areas.* Sixty-three percent are detached single-family homes.* Twenty percent of investment homes were bought in the West.

Sales of new homes rose 2.6 percent nationwide in March compared with the month before — a sharp contrast to the dismal existing home sale number, which plunged 8.4 percent in the same month.New home sales were at a seasonally adjusted annual rate of 858,000, according to the U.S. Census Bureau and Department of Housing and Urban Development. Though a slight uptick from February, sales were still 23.5 percent below the March 2006 estimate of 1.1 million.Meanwhile, the median price for a new home was $254,000, according to the report. The number of new homes for sale at the end of March was 545,000 — a 7.8 months supply.

After experiencing a slight uptick in the past few months, sales of existing homes fell 8.4 percent nationwide to a seasonally adjusted annual rate of 6.12 million units in March. That’s 11.3 percent below the March 2006 pace of 6.90 million, according to the National Association of Realtors.The national median home price remained relatively steady at $217,000, just 0.3 percent below March of last year.In the West, sales dropped 9.1 percent in March to an annual rate of 1.20 million units — 16.7 percent below the year ago period. The median price — where half the homes sold for more and half for less — was $330,600, down 2.9 percent from a year ago.

Builder confidence in the housing market’s future continued to drop in

April, as fears about the subprime mortgage market deepened, according

to a survey by the National Association of Home Builders (NAHB) and

Wells Fargo. The Housing Market Index declined three points to 33 this

month, the lowest level since December.Based on a monthly survey, the index gauges builder perceptions of

single-family home sales, sales expectations and traffic of prospective

buyers.The subprime mortgage meltdown has caused lenders to

drastically tighten standards — making it difficult for many

prospective first-time buyers to qualify for loans. And that’s got

builders worried, especially those that cater to the entry-level

market. Analysts say it’s unclear just how much the subprime crisis

will impact the housing market as a whole."While we still

expect to see some improvements in housing market activity beginning

later this year, the downside risks and uncertainties surrounding that

forecast are considerable," NAHB chief economist David Seiders said in

a statement.

Forbes Magazine recently labeled Scottsdale one of the hottest real estate markets in the country. The area’s median home price jumped 10.4 percent from the fourth quarter 2005 to the same period in 2006 — hitting $450,000.Joining Scottsdale in the Top 10 were Miami, Fla., Portland, Ore., Dayton, Ohio, Brooklyn, N.Y., Hollywood, Fla., Wilmington, N.C., Columbus, Ohio, Tulsa, Okla. and Tampa, Fla.Forbes also ranked the nation’s 10 weakest real estate markets. Tthey are New Orleans, La., Cleveland, Ohio, Reno, Nev., Sarasota, Fla., San Diego, Calif., Sacramento, Calif., Akron, Ohio, Tucson, Memphis, Tenn. and Cincinnati, Ohio.To read the entire feature click here.

I heard a report on National Public Radio this morning that Illinois officials are working on a proposal that would require first-time homebuyers to undergo financial counseling. Instead of singling out groups of people based on their credit scores or other criteria, the program would focus instead on certain types of loans.It’s an interesting idea given the current panic about the subprime market. Many homeowners are entering delinquency, as interest rates on their adjustable-rate loans reset and mortgage payments shoot up.Industry observers I’ve talked to say many Valley buyers who got into 100 percent loans, stated-income loans or other products often used in the subprime market didn’t know what packages they were getting into or the consequences. I’ve talked to some of those homeowners myself. One couldn’t remember the interest rate he had just signed up for when buying his first home.So, overall, I think counseling is a great idea. Whether it should be government-mandated is another question.Any thoughts out there on this?You can listen to full NPR here.

Yahoo Real Estate has rolled out a new section that allows users to search for foreclosure properties and offers overviews of various markets, as well as how-to tips.As of today, the site lists 569,347 foreclosure properties throughout the country with an average price of $165,780. For Arizona, it lists 10,016 properties with an average cost of $215,573. You can also do searches by city, ZIP code and price. Here’s the downside: the site doesn’t have addresses. For that, you have to subscribe to RealtyTrac, an Irvine, Calif. firm that tracks foreclosures nationwide and provides Yahoo its data.Check out the site for yourself by clicking here.