An auction for a 325-acre parcel of state land in northeast Phoenix’s Desert Ridge development drew no bidders.
No builder or investor was willing to pay the Arizona State Land Department’s $150 million asking price for the parcel Aug. 8.
For the past few years, land in Desert Ridge sparked bidding wars as home prices and sales in the area soared.
In January, a condominium developer paid a record $1 million an acre for a piece of land in Desert Ridge.
But the market has changed dramatically since then.
“The real estate market is in transition, and land sales have obviously slowed down,” said Mark Winkleman, state land commissioner.
Mr. Winkleman said the Desert Ridge land was appraised at nearly $462,000 an acre early this year based on last year’s nearly record sales prices.
The state agency is working now to get the 325-acre parcel, as well as a large piece of property in Fountain Hills, reappraised based on today’s less-frenzied housing market.
Analysts said the Desert Ridge parcel may have to be broken into smaller chunks that builders can afford.
Another auction date has been set for Sept. 28.
Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.