If you are considering purchasing a home with FHA financing, you may want to consider doing so sooner, rather than later.  FHA seller down payment assistance dissolved as of October 1, 2008.  It was  announced in July that down payments for FHA loans will increase from 3% to 3.5%, effective January 1, 2009.  Yesterday, it was also announced that FHA loan limits for Maricopa County will reduce from $346,250 to $271,050 effective January 1, 2009.

Current Conditions in the Phoenix market

Today there are 45,108 single family detached listings in the Phoenix metro area MLS.  That is an increase of 529 listings over last week.

Total listings (including condos, townhomes and patio homes) is 54,796 which is an increase of 705 over last week.  This is not unusual as we approach the holidays.

In reviewing sales statistics from the mid-October to mid-November range in 2007 to the same dates in 2008, number of days on market for listings in down by 38%, and number of properties sold is up by 51%. 

The absorption rate (the number of listings going pending, versus remaining active listings) has remained at 11% this week.