FED CHAIRMAN: "WE'LL TAKE A LOOK AT THAT"

Housing permits up 26% in February

from the Arizona Republic, reports that permits for new-homes in Maricopa and Pinal counties jumped 26% in February compared with the previous month, the third monthly increase. Builders pulled 3,630 permits in February, according to the latest report from RL Brown's Phoenix Housing Market Letter . Brown stated that 18 percent of the February permit total was for condos. The increase in permits indicates that builders are starting to make a dent in their excess inventory and are looking to start new construction. Brown said that clearing out the excess inventory in both the new-home and resale market is key to any correction. Brown said that the spec inventory is falling as more builders buckle down. Brown's report also noted that the number of closed sales was the lowest since May 2003.

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Arizona's pay growth lags U.S. rate from the Arizona Republic,

reports that new income figures released by the U.S. Bureau of Economic Analysis shows that Arizona's per capita income rose 4.8 percent last year to $31,458, ranking it 39th in the country. The typical American earned $36,276 last year, an increase of 5.2 percent over the prior year. Arizona's income figures are kept in check in part because of the state's rapid growth. "It's kind of a double-edged sword," said Tracy Clark, an economist with ASU. "Rapid population growth tends to hold wages down because there is always somebody moving in to take a job. What typically drives wages up is some shortage in labor."

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Peoria upscale homes fill niche from the Arizona Republic,

reports that a new, upscale gated community is opening in Vistancia which will give buyers looking for luxury homes in the Northwest Valley more options. Blackstone will be a gated country-club style development with homes in the $600,000 to almost $1 million. Cachet Homes and TW Lewis just opened their models last weekend. Blackstone will have 350 builder homes and 150 custom homes to go along with the Blackstone golf course and a 30,000 square foot clubhouse. Curt Smith, chief operating officer for Sunbelt Holdings, which is co-developing Vistancia with Shea Homes, said "we felt a country club lifestyle was something that was missing in the market here."

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From Federal Reserve Chairman Ben Bernanke: The economic outlook and Calculated Risk on Bernanke: Bernanke's Forecast

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Housing Bubble and Real Estate Market Tracker from SA for 3/28