Current conditions in the Phoenix market:

Today, there are 44,355 single family detached listings in the Phoenix Metro area MLS.  Total listings (including condos, townhomes, patio homes) is 53,913.  LIsting inventory has been bouncing around in this range for most of 2008. 

MLS data indicates that September of 2008 saw our strongest surge in sales, 6168 total, since August of 2006.  Year over year data indicates that is an 81% increase over September of 2007. 

MLS data also indicates that 83% of homes that sold in September sold for under $300,000.

It is possible that both the number of closings, and the price range was directly related to the legislation that put an end to FHA seller down payment assistance programs, effective October 1, 2008.  Many buyers requring the program may have scrambled to identify and close on a property prior to the deadline.  October's data should shed light on the matter.

The listing absorption rate (number of listings going pending, versus remaining active) has been bouncing between 13-14% for the past four months (this may sound discouraging, but it's certainly an improvement from the 5% absorption rate experienced in December of 2007).