Where not to buy a house

I was just reading a Business 2.0 article about the new rules of real estate and was not in the least bit surprised to discover that Phoenix is in their Top 10 Cities of Where Not To Buy. They state about Phoenix:

Last year as many as a third of new home sales here went to speculators and investors. Many of them are now competing with builders to dump their holdings, and prices in some developments have dropped by more than $100,000. Source: Business 2.0 Where Not to Buy

All you need to do is take a casual stroll around some of the new and used houses for sale and see what astronomical prices people are expecting for next to nothing. I agree with their analysis. Another year of falling prices ahead for Phoenix.