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Elliott Pollack

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Arizona is enjoying boom conditions the likes of which it has not seen in more than a decade. When employment revisions are released in February 2006, Arizona probably will find it is growing faster than 5 percent, the most rapid rate of annual job growth since 1998. The housing market is at record levels, and commercial real estate markets should continue to be strong for some time.

There is still a great deal of untouched equity in homes. Employment, as well as real income, are expected to continue to increase. While 2005 may ultimately be the peak in the cycle, it appears 2006 is likely to be a good year as well.

It is my fervent hope that they don't do the same thing this time. The level of single-family housing growth in Phoenix and Tucson is not sustainable.

The housing market is at record levels, and commercial real estate markets should continue to be strong for some time.

A betting man would say that 2005 will end up being the peak of the cycle.

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