>> Ted: NEXT ON ARIZONA HORIZON, WHY THE COST OF EGGS SO HIGH.

AND THE IMPACT OF RECENT WINTER STORMS ON ARIZONA'S WATER SUPPLIES.

AN UPDATE ON A COOLING HOUSING MARKET IN THE STATE.

THOSE STORIES ON ARIZONA HORIZON.

GOOD EVENING AND WELCOME TO ARIZONA HORIZON.

CONGRESSMAN RUBIN GALLEGO IS RUNNING FOR SENATE.

HE'S RUNNING FOR KYRSTEN SINEMA'S SEAT AND SHE'S SWITCHING FROM DEMOCRAT TO INDEPENDENT.

SHE'S GOING TO DECIDE WHETHER SHE RUNS AND IF SHE RUNS, IT WILL SET UP A THREE-RUN RACE, INCLUDING KARI LAKE.

>>> THE OATH KEEPERS WERE FOUND GUILTY OF SEDITIOUS MILITARY AND THEY WILL REMAIN ON HOUSE ARREST.

ATTORNEYS FOR THE DEFENDANTS TRYING TO DEFINE THIS AS BLUSTER AND THE JURY DIDN'T BUY IT.

>>> LUNAR SITUATIONS AFTER SATURDAY NIGHT'S MASS SHOOTING AT A SOUTHERN CALIFORNIA DANCE STUDIO.

11 PEOPLE WERE KILLED AND 72-YEAR-OLD SUSPECTED GUNMAN HOT SHOT AND KILLED HIMSELF.

THEY TALK ABOUT THIS IN THE ASIAN COMMUNITY AND THE IMPACT OF THE AS SOON AS MASS SHOOTING.

>> SHOP OWNERS AND PEOPLE PREPARE BY CLEANING THEIR HOMES AND STRAIGHTENING THEIR BOOKS OUT AND JUST THE IDEA OF CLEANING OUT THE OLD AND PREPARING FOR THE NEW AND SPECIAL FOODS AND CAKES ARE PREPAREDAND THERE ARE FESTIVALS AND IT'S A JOYOUS TIME OF YEAR FOR FAMILIES TO GET TOGETHER AND TO HAVE A TRAGEDY SUCH AS THIS ON THE EVE OF THE LUNAR NEW YEAR IS JUST INCREDIBLY SAD AND TRAGIC.

>> Ted: AUTHORITIES BELIEVE THE GUNMAN FREQUENTED THE STUDIO IN THE PAST AND SPECIFICALLY TARGETED SOME OF THOSE KILLED AND OTHERS SHOT RANDOMLY.

>>> SOUTH KOREA NEW PROBE AND THIS IS OF SPECIAL NOTE AND DUE TO THE CAMERAS USED AND THOSE CAMERAS INCLUDE THE NASA'S FINISHED CAM DEVELOPED AT ASU AND FLYING AT AN ALTITUDE ABOVE SURFACE AND DATA WILL BE USED AS RESEARCH FOR FUTURE EXPLORATION INCLUDING THE ART ARTEMIS PROGRAM TO LAND AT THE SOUTH POLE.

>>> THE PRICE OF FOREVER STAMPS IS THREE CENTS HIGHER AND PUTS THAT AT 60 CENTS 60 CENTS A POP.

ONE OUNCE METERED MAIL COSTS 60 CENTS AND DOMESTIC POSTCARDS ARE AT 48 CENTS.

>>> ANYONE WHO HAS BEEN ANYONE NEAR A GROCERY STORE KNOWS THE PRICE OF EGGS HAS INCREASE INCREASED BIG TIME AND IS THERE SOMETHING ELSE GOING ON?

WE HAVE ASU'S WP CARRY SCHOOL OF BUSINESS.

IT'S NICE TO HAVE YOU IN-PERSON.

>> NICE TO BE HERE.

>> Ted: PRICE OF EGGS IS UP 60% OVER THE SAME TIME LAST YEAR AND WHAT'S UP OVER WITH THAT?

>> EGGS ARE AN INTERESTING PRODUCT.

THE AVIAN FLU, THE BIRD FLU CAUSING THE FARMERS TO CALL OVER 50 MILLION BIRDS AND THAT HAS DECREASED THE PRODUCTION BY CLOSE TO 8% AND TAKES ABOUT SIX MONTHS FOR THE NEW FLOCK AND ASSUMING THERE IS NO AVIAN FLU AND SIX MONTHS TO GET BACK NEAR NEW NORMAL AND SO, COMBINE THAT WITH COST OF FEED INCREASE, COST OF PACKAGING, LABOR COSTS AND YOU HAVE A PERFECT STORM.

>> Ted: WHAT ABOUT SUPPLY CHAIN ISSUES?

>> SUPPLY CHAIN COMES WHERE THE LABOR IS NOT AVAILABLE AND THE FEED IS NOT COMING IN AT THE RIGHT TIME AND TRANSPORTATION ISSUES ARE STILL THERE AND NOT AS BAD AS BEFORE AND THE BIGGER CULPRIT HERE IS THE AVIAN FLU.

>> Ted: WE ADD AN AVIAN FLU IN 2015 AND DID WE SEE THE SAME PRICE HIKES THEN?

>> NOT AS BAD AND THAT'S THE REASON I CALL IT A "PERFECT STORM."

YOU HAVE FEED NOT COMING IN, HIGH COST OF LABOR, PACKAGING ISSUES AND HIGH GAS PRICES AND YOU SEE WHAT WE'RE SEEING TODAY.

>> Ted: WE'RE SEEING THAT WITH EGGS AND ARE WE SEEING THAT WITH OTHER THINGS?

>> THE GOOD NEWS, THE FOOD PRICES THIS MONTH, NOVEMBER THROUGH DECEMBER, INCREASED 0.3%, WHICH IS THE LOWEST SINCE MARCH OF 2021.

SO THERE ARE CERTAIN PRODUCTS THAT ARE SEEING PRICE INCREASES.

FOR EXAMPLE, ALL OF CALIFORNIA WITH DROUGHT IS CAUSING LETTUCE, TOMATOES AND BACON HAS COME DOWN DOWN.

>> Ted: INTERESTING.

BEHAVIOR ALL PRICES, ARE WE LOOKING AT DEMAND, SUPPLY AND DEMAND ISSUES, AS WELL AS SUPPLY CHAIN ISSUES?

>> SO DEMAND IS REDUCING AND SO THE PEOPLE ARE BUYING LESS.

THEY'RE SUBSTITUTING CHEAPER PRODUCTS FOR THE EXPENSIVE PRODUCTS BECAUSE THEY WERE AT THEY'RE WORRIED ABOUT INFLATION AND REDUCTION OF DEMAND WILL FIX THE SUPPLY CHAIN ISSUES.

>> Ted: INFLATION, HOW MUCH OF A FACTOR?

>> INFLATION IS BECAUSE OF THOSE FACTORS AND THE GLOBAL WORLD IS WANTING PRODUCTS AND OUR SUPPLIERS CAN SELL THERE AT A HIGH PRICE OR WE STOP EXPORT -- WE PUT EXPORT CONTROLS WHICH DOESN'T HAPPEN HERE AND WE PAY THE HIGH PRICES THAT THE PRODUCT IS SELLING ACROSS THE BORDERS.

>> Ted: OBVIOUSLY, YOU'RE SAYING MONTH-TO-MONTH AND BRIGHT SIDE HERE AND YEAR-TO-YEAR, IT DOESN'T LOOK THAT HIGH AND ARE WE ON A DOWNWARD TREND FROM INFLATION TO SUPPLY ISSUES?

>> YES.

BASED ON THE RESEARCH, WE'RE LOOKING AT THE PRICE INCREASE, THE INFLATION WOULD HOPEFULLY BY THE MIDDLE OF THIS YEAR START TO TAME A LITTLE BIT.

AND THAT IS PURELY DRIVEN BY REDUCED DEMAND AND SOME OF THE SUPPLY CHAIN ISSUES HAVE BEEN TAKEN CARE OF AND MIDDLE OF THE YEAR, WE START TO SEE -- YOU'LL START TO SEE FLATTENING OF THE INFLATION, PARTICULARLY IF THE FOOD ITEMS.

AND IF WE DO A SOFT LANDING AND THAT WILL BE A GREAT THING, BUT IF THE TYPE OF LAYOFFS IN THE TECH INDUSTRY, IF THAT CATCHES FIRE IN OTHER INDUSTRIES, THEN ALL BETS ARE OFF.

>> Ted: ALL BETS ARE OFF AND IS THIS SOMETHING, THOUGH, REGIONAL TO THE WEST?

WE WILL TALK ABOUT WEATHER, AND I KNOW CALIFORNIA IMPACTS THAT, AS WELL.

ARE PEOPLE IN MISSOURI AND CALIFORNIA FEELING THE SAME THING.

>> THEY ARE, BECAUSE IF YOU LOOK AT THE WHEAT BELT TO CANADA, EITHER SEEING DROUGHT ACROSS THE BELT.

NOT ONLY AROUND CALIFORNIA.

CALIFORNIA MAY NOT GROW WHEAT, BUT THEN YOU HAVE THE CENTRAL BELT TO CANADA IS WHEAT AND BECAUSE OF THE DROUGHT AND THE WAR IN UKRAINE AND LACK OF FERTILIZERS, WE'RE SEEING CROP FROM CANADA REDUCED BY 30%.

>> Ted: YOU KNOW THE WORD IS FLAT AND TOO FLAT FOR YOU?

YOU CAN GET A RIPPLE AND WE'RE FEELIN' IT.

>> THAT IS AN INTERESTING STATEMENT, BUT WHAT'S THE ALTERNATIVE?

WE CLOSE THE BORDERS?

CAN WE PRODUCE EVERYTHING WE WANT AND WE DON'T NEED ANYTHING FROM ANYBODY ELSE?

ONE OF THE AFTER-EFFECTS WITH THE PROPER RISK MITIGATION, WE CAN GET THE BENEFITS OFF IT.

BUT THE STRENGTH OF THE SUPPLY CHAIN IS THE SUPPLY OF THE WEAKEST LINK AND THAT'S A PAPER CLIP AND THAT'S THE SUPPLY CHAIN.

THAT'S WHAT WE HAVE TO BALANCE.

>> Ted: CORRECT.

AND THE HEN IS OUT HEN HOUSE.

[ Laughter ] >> Ted: THANK YOU FOR COMING.

>> THANK YOU FOR HAVING ME.

>> Ted: RECENT SNOWFALL IN ARIZONA'S HIGH COUNTRY ON THE STATE SUPPLY.

>> Ted: FLAGSTAFF RECENTED RECORD AMOUNTS OF SNOWFALL AND CALIFORNIA HAS BEEN HAMMERED BY STORMS.

TO FIND OUT HOW MUCH RAIN AND SNOW HAS MUCH, WE WELCOME CHARLIE ESTER, THE MANAGER.

WE'LL START WITH ERP, BECAUSE WE START WITH THE HIGH COUNTRY SNOW.

>> WHAT A CHANGE OF EVENTS FOR US.

>> Ted: THE SNOW PACK, ESPECIALLY, BECAUSE THAT MEANS SO MUCH MORE THAN JUST SIMPLE RAINFALL AND EXPLAIN THAT.

>> WE RELY ON SNOWMELT FOR THE RUN-OFF AND THE STORMS HAVE PILED UP RECORD AMOUNTS OF SNOW.

WE'RE AT 30% OF RECORD SNOW PACK AND IT'S ALREADY TWICE THE NORMAL SEASONAL MAXIMUM AND WE EXPECT AN ABUNDANT AMOUNT OF WATER INTO THE RESERVOIRS IN ADDITION TO THE AMOUNT WE'VE RECEIVED.

>> Ted: WHAT'S THE NUMBER AND WHAT ARE YOU EXPECTING?

>> 77% FULL AND JANUARY 1st, WE WERE 65% AND WE WILL FILL THE VERDE SYSTEM AND THE SALT SIDE WITH ROOSEVELT LAKE WILL GET TO FULL AND IF WE GET ANOTHER STORM, WE CAN GUARANTEE IT WILL FULL.

>> Ted: WHAT ABOUT IN CALIFORNIA, UTAH, COLORADO, THESE AREAS AND THEY'RE GETTING MASSACRED WITH THE SNOW AND THAT HAS TO HELP IN TERMS OF COLORADO RIVER WATER.

>> IT DOES HELP.

THE UPPER ROCKIES IS WHERE ALMOST ALL OF THE FLOWS OF THE COLORADO RIVER THAT WE DEPEND ON COME FROM AND THE BASINS BETWEEN 120% AND 200% OF NORMAL AND WE CAN HOPE THAT SNOW PACK IS GOING TO TRANSLATE INTO FLOWS IN THE COLORADO RIVER, BUT IT WOULD TAKE YEARS OF GREAT SNOW PACK IN THE ROCKIES TO ACTUALLY CORRECT THE PROBLEMS THAT WE'RE SEEING IN THE RESERVOIRS WITHOUT OTHER STEPS THAT WE'RE BEING ASKED TO TAKE.

>> Ted: I WAS GOING TO BRING UP THOSE OTHER STEPS, BUT WHEN IT RAINS SO MUCH IN SOUTHERN CALIFORNIA, WHERE DOES THAT RAIN GO AND DOES THAT HELP COLORADO RIVER'S SUPPLY?

>> INDIRECTLY IN THAT PEOPLE MIGHT REDUCE WATER USE, BUT IT DOES NOT FILL THE RESERVOIRS THAT HOLD COLORADO RIVER WATER.

>> Ted: I ALWAYS WORRY.

WHEN I SEE THIS RAIN, IT'S GREAT, BUT WHERE IS IT STORED AND ANYWHERE NORTH TO WHERE IT CAN HELP US WITH CAP?

>> RAIN CAN RECHARGE AQUIFERS WHICH CAN BE ANOTHER SOURCE OF GROUNDWATER FOR DIFFERENT POP POPULATIONS.

>> Ted: WHERE AROUND THE WATER ARE THEY AND HOW ARE THEY DOING?

>> THE AQUIFER SYSTEM IN PHOENIX UNDERLIES THE ENTIRE VALLEY AND WE'VE HAD AN EXTENSIVE PROGRAM FOR THE LAST 30 YEARS OF RECHARGES WATER AND ESSENTIALLY HAVE WORKED THROUGH THE PARTNERS WITH THE WATER BANK TO RECHARGE AROUND SIX MILLION ACRE FEET AND THERE'S A SIGNIFICANT AMOUNT OF STORAGE.

IF WE GET FULL RESERVOIRS AND MAKE RELEASES THROUGH THE VALLEY, THAT'S A WONDERFUL WAY TO RECHARGE WATER AND THE SALT RIVERBED IS A WATER INFILTRATOR.

>> Ted: ISN'T THAT INTERESTING?

IT'S OVERFLOW AND HELPING TO FILL AQUIFERS WEST OF HERE.

>> RIGHT THROUGH TOWN.

>> Ted: WE TALKED ABOUT HOW MUCH RAIN IS NEEDED OR SNOW IS NEEDED AS FAR AS REDUCING DROUGHT CONDITIONS AND CONCERNS WITH THE COLORADO RIVER AND FOR SRP, HOW DOES THAT WORK?

WHAT CONCERNS OR DROUGHT CONDITIONS AND WHAT ARE YOU DEALING WITH HERE?

>> OUR SYSTEM IS SO VOLATILE AND ONE YEAR CAN TURN US FROM LOW CONDITIONS TO FULL AND WE'RE SEEING THAT THIS YEAR AND ONE THING WE WANT TO STRESS WITH OUR CUSTOMERS AND ANYONE THAT WILL LISTEN TO US IS, IT'S ALWAYS IMPORTANT TO CONSERVE WATER, TREAT IT VERY WISELY AND WITH THE RESPECT THAT IT'S DUE.

AND WE'RE LOOKING AT WAYS TO BE ABLE TO HELP ALLEVIATE THE CRISIS SITUATION ON THE COLORADO.

>> Ted: I WAS GOING TO SAY, HOW WILL YOU DO THAT?

>> WE HAVE TWO MAJOR PROJECTS -- ACTUALLY THREE JOSH MAJOR PROJECTS, TO ENLARGE THE BARTLET DAM AND WE WILL SPILL 200-ACRE FEET AND IF WE PROVIDE IT TO AREA OUTSIDE OF THE TERRITORY, THAT WOULD WORK INCREDIBLY WELL AND WE HAVE A HUGE DAM THAT THE MAJORITY IS ALLOCATED TO FLOOD CONTROL SPACE.

IF WE CAN USE SOME OF THAT FLOOD CONTROL SPACE DURING A WET YEAR, AGAIN, THAT WATER COULD BE USED OUTSIDE OF THE PROJECT AREA AND THEN, AT GRANITE REEF DAM WHERE THE CAP AND THE SALT RIVER PROJECT AREAS CROSS, WE WANT TO BUILD A CONNECTION TO WHERE WE CAN PUT OR WATER SPOT CAP SYSTEM.

>> Ted: ALL OF THOSE THINGS, IS THAT MUSIC TO ANY FEDERAL OFFICIAL'S EARS, AS THEY CONSIDER WHAT THEY'LL DO IN THE SPRING AS FAR AS WATER ALLOCATION IS CONCERNED?

>> NO.

THOSE ARE IMPORTANT IMPOSSIBILITIES FOR BRINGING NEW WATER TO THE CITIES IN CENTRAL ARIZONA.

FROM PHOENIX TO TUCSON, THEY WILL NOT HAVE ANYTHING TO DO WITH THE DECISIONS THIS SUMMER ABOUT ADDITIONAL CUTS IN COLORADO RIVER SUPPLY.

>> Ted: WHAT ARE THE IMPORTANT FACTORS THERE?

>> YOU KNOW, IT WILL HELP IF WE HAVE A GOOD WINTER AND THE RESERVOIRS CONTINUE, THAT WILL HELP, BUT WE CAN PRETTY MUCH COUNT ON ADDITIONAL CUTS.

>> Ted: DO THE FEDS LOCK AT LOOK AT SRP AND SAY MAYBE WE DON'T HAVE TO BE DRASTIC?

>> NO.

WATER IN THE SRP SYSTEM IS MOSTLY CONSTRAINED TO SRP'S PROJECT LANDS.

SO THAT'S SPOKEN FOR AND ACCOUNTED FOR AND THE WATER THAT COLORADO RIVER WATER USING COMMUNITIES USE IS WATER THAT IS GENERALLY NOT CONNECTED TO THAT SRP SYSTEM.

>> Ted: THESE INCREDIBLE PHOTOGRAPHS OF THE SNOW EVERYWHERE IN CALIFORNIA AND NEVADA AND JUST ALL OF THE SNOW, WE NEED HOW MUCH MORE?

THISTHIS IS ACTUALLY ARIZONA HERE AND AS FAR AS THE WEST, EVERY WINTER FOR THE NEXT FIVE YEARS?

>> EITHER A FEW IMPROVE INCREDIBLY GOOD WINTERS OR TO REDUCE THE AMOUNT OF WINTERS TO ALLOW THE RESERVOIRS TO RECOVER.

>> Ted: BECAUSE WE'RE OFFICIALLY IN A DROUGHT, ARE WE NOT?

>> THE QUESTION AREN'T, ARE WE IN A DROUGHT.

WIRE LOOKING AT RESERVOIRS THAT HOLD YEARS OF WATER STORAGE FOR USERS.

AND SO IT'S NOT SO MUCH WHAT'S HAPPENING THIS YEAR.

IT'S WHAT HAS HAPPENED OVER THE PAST FEW YEARS.

HOW MUCH WATER HAS BEEN TAKEN OUT OF THE RESERVOIR AND WHAT IS THE FUTURE DEMAND.

>> Ted: SAME THING WITH SRP, INSURE.

>> OUR SYSTEM ISHUH?

>> IN TERMS OF WATER SUPPLY, WE'RE NOT IN A DROUGHT.

>> Ted: YOU MENTIONED EXPANDING BARTLET TO KEEP THE SPILLOVER FROM HAPPENING BUT IT'S NOT SO BAD AS FAR AS SPILLOVERS.

>> DIRECT USE WOULD BE A BETTER USE AND THERE WILL BE SPILL FROM THE VERDE AND SOME OF THE STORAGE, ADDITIONAL STORAGE MAY GO TOWARDS GROUNDWATER RECHARGE IN A MORE DIRECT FASHION.

>> Ted: I SEEMS LIKE IT'S SOMEWHAT ENCOURAGING FOR A CHANGE TUKE TO TALK TO YOU.

>> FOD BAD NEWS WE GOT A LOT OF SNOW.

>> THANK YOU BOTH FOR JOINING US.

>> THANK YOU.

♪♪ >> Ted: HOUSING PRICES ARE DOWN AND FOR MORE, WE WELCOME THE SENIOR REAL ESTATE REPORTER AT THE ARIZONA REPUBLIC.

IT'S A PLEASURE.

>> THANK YOU.

>> Ted: WE GOT OFF OF A RELATIVELY-OFFBEATLY OFFBEAT TALK ABOUT THE WEATHER.

>> IT'S BEEN A WILD RIDE AND ONE SOURCE SAYS IT'S BEEN A SELLER'S MARKET, A BALANCED MARKET AND BUYER'S MARKET IN ONE YEAR.

>> Ted: WHAT'S HAPPENING?

>> PRICES ARE POSED AND THEY ARE DIPPING, NOT DROPPING AS MUCH AS THEY WERE.

BUT WILL DIP THIS MONTH AND PROBABLY NEXT MONTH AND SALES ARE DOWN.

SEMI IS WAY DOWN AND THE HOMEOWNERS TOOK HOUSES OUGHT MARKET THATOFF THEMARKET AND THEY REALIZE IT'S NOT THE BEST TIME TO SELL.

>> Ted: KEEPING A TIGHT HOLD.

>> HEADING INTO THE HOME BUYING SEASON AND HELPS WITH THE SUPER BOWL COMING.

WHAT REALLY PUT THE BRAKES ON THE HOUSING MARKET WAS THE INCREASE IN INTEREST RATES.

>> Ted: HOW MUCH OF A FACTOR WAS THAT?

>> HUGE FACTOR AND YOU COULD SEE IT CORRELATE AND WHEN INTEREST RATES HIT 7, BUT THEY HAVE DIPPED AND NOW THEY HAVE JUST AS OF THIS WEEK, DIPPING DOWN CLOSER TO 6 AND AN INCREDIBLE -- NOT INCREDIBLE, BUT IT WORDSES THE TWO-ONE BUYDOWN WHERE THE SELLER IS INTO A CONCESSION AND BUY DOWN THE INTEREST RATE FOR 2%.

>> Ted: WE'VE SEEN THAT HAPPEN?

>> YES.

AND IT'S HELPING THEM A LOT WITH THE HOPE THAT INTEREST RATES WILL GO DOWN.

>> Ted: FIRST-TIME BUYERS HAVE BEENBEEN STYMIED.

>> THEY'RE OUT OF THE MARKET AND WHAT'S GOING ON WITH PRICES AND SO, JUST WATCHING THEM AND, YOU KNOW, THEY PAID CATCH AND WE'RE NOT, LIKE, WORRIED ABOUT FORECLOSURES AND THEM WALKING AWAY AND THEY'RE GETTING DECENT RENT.

>> Ted: SO IF THE HOME SALES ARE STARTING TO DECLINE, IT WOULD SEEM AS THOUGH THE SUPPLY WOULD BE STARTING TO GO UP A LITTLE BIT AND IF YOU'RE HOLDING ONTO YOUR HOME RIGHT NOW, ARE YOU WAITING FOR THINGS BECAUSE THEY PLUMMET AND YOU DON'T WANT TO GET CAUGHT IN THAT WAVE?

>> THERE ARE PEOPLE WHO FEEL THAT WAY AND THE HOUSING MARKET EXPERTS, THEY FEEL WHEN THERE'S SLOWING AND THEY COULD PICK UP AND WE DON'T ENVIRONMENT MARKET HAVE THE MARKET CONDITION OF THE CRASH.

AND THEY DON'T HAVE STILL TOUGH TO GET A LOAN AND YOU NEED A DOWN PAYMENT.

WALL STREET IS BUYING HOMES AND PAYING CASH AND NOT FUNDING THE BAD LOANS.

IT'S A DIFFERENT SITUATION AND WE KNOW WE HAVE POPULATION GROWTH.

I MEAN, THINGS ARE TOUGH WITH CONSUMER PRICES AND THE SUPPLY CHAIN AND EVERYTHING ELSE.

BUT STILL SEEING PEOPLE BUY AND SEEING THOSE FIRST-TIME BUYERS WHO ARE, LIKE, YEAH ONE DON'T, I DON'T HAVE TO COMPETE AND I'M GETTING A DECENT INTEREST RATE BECAUSE OF THE SELLER CONCESSIONS.

>> Ted: SO THE LOWER-END HOMES, FIRST-TIME HOME BUYERS, IS THAT SEEING THE BEST ACTION?

>> SO, YOU KNOW, THE LOWER PRICED HOMES, CLOSER TO THE MEDIAN, CLOSER TO FOUR, ALWAYS A STRONG MARKET.

BUT THE LUXURY MARKET, A MILLION OVER, IT DID NOT TAKE THE SAME TURN AS THE REST OF THE MARKET BECAUSE THOSE PEOPLE DON'T RELY ON INTEREST RATES.

IT'S A LOT OF CASH.

IT'S A LOT OF BUYERS FROM CALIFORNIA AND THE EAST COAST AND IT'S NOT, YOU KNOW, GOING AS FAST AS IT WAS, BUT NOT SEEING THE BIG PRICE DROPS OR THE SAME DROP IN SALES.

>> Ted: TOWNHOUSES, CONDOS, SINGLE FAMILY HOMES AND ANY DIFFERENCES?

>> THE CONDO AND TOWNHOUSES ARE CLOSE, BUT TYPICALLY MORE AFFORDABLE AND A LITTLE BIT STRONGER, BUT WE CROSSED OVER.

LIKE CHANDLER WAS A BUYER'S MARKET AS OF NOVEMBER AND FIRST WEEK IN FEBRUARY, AND NONE OF IT WENT FROM STABILIZING BUT TO SELLERS AND MAYBE THAT'S THE VISITORS COMING IN AND WE DON'T KNOW.

ANOTHER FIVE MARKETS INCLUDING PHOENIX HAVE STABILIZED.

>> Ted: WITH THAT MIND AND YOU REFERRED TO THIS BUT ONCE THE WEATHER IS WARMER THAN IT IS RIGHT NOW, WHICH WILL BE WELCOME, IT EXPLODES, DOESN'T IT?

>> IT REALLY DOES.

YOU KNOW, IF WE HAVE SUPPLY AND HOMEOWNERS ARE WAITING FOR GROUPS TO COME IN, WE'LL WATCH THAT.

NEXT MONTH WILL BE TELLING.

>> Ted: I WONDER IF YOU'RE HOLDING ON AND SEEING YOUR EQUITY JUST DRIP, DRIP?

>> RIGHT NOW, THE MEDIAN HOME PRICE IS DOWN 4% AND A YEAR AGO.

IF YOU BOUGHT A YEAR AGO, IT'S 4%.

I SAW THE ANALYSIS.

IF YOU BOUGHT TWO YEARS AGO, YOU'RE GREAT AND YOU BOUGHT THREE YEARS AGO, YOU'RE GOOD AND THE DIFFERENCE ON WATT PROFIT CAN MAKE.

ANALYSTS AND MARKETS ARE SAYING IT'S SLOW AND YOU DON'T NEED TO, YOU MODERATE AND SEE INTEREST RATES AND SEE WHERE IT GOES.

>> Ted: THE RENTAL MARKET, WHAT IS THIS DOING TO RENTS?

>> APARTMENT RENTS ARE DIPPING SLIGHTLY AND NOT A LOT.

1% TO 3%, DEPENDS ON THE CITY AND SINGLE FAMILY RENTS ARE DOWN AS WELL AND SO, SEEING THAT, BUT NOT BIG DROPS.

>> Ted: GREAT STUFF AND GOOD TO SEE YOU.

AND THAT IS IT FOR NOW.

I'M TED SIMONS AND THANK YOU FOR JOINING US AND YOU HAVE A GREAT EVENING.