Hi, Shane -
It's interesting that your question talks about Phoenix markets, plural. There are a number of way to view the Phoenix market. In fact, what we're seeing in the lower-priced home market (under $200K) is a small sales increase, with stabilizing prices. Another market that has stayed somewhat stable is the high-end market; homes in the multi-millions. There of course were price corrections, but the values haven't dropped precipitously at the high end. Interestingly, some zipcodes in the greater Phoenix area have actually increased in value. For instance, the median home price in three Scottsdale zipcodes appreciated in value by 3.9% - 6.9% in the period between 2006 & 2007. Bottom line, while some segments of the market continue to have price reductions, a few are continuing to go up. Will prices continue to go down? Homes prices that were inflated over the past couple years probably still have some room to drop, but because more inventory is selling, the price reductions will likely slow. If I can answer any other questions, or help in any way, please let me know.
Regards from paradise,