This is an excellent article on the outlook for the Las Vegas real estate and homes market in 2007.

Almost all of it applies to Phoenix and Arizona.

Southern Nevada’s slumping residential real estate market will start recovering by year’s end even as other markets nationwide continue to struggle, a local economist predicts.

Our quick rebound will be stoked by continued population and job growth, says Keith Schwer, director of the Center for Business and Economic Research at UNLV. The region will fare better than, for instance, California, where prices are even higher than in Nevada, and Michigan, which has lost hundreds of thousands of jobs since 2000, he said.