It is now May 2009 and real estate in Arizona is no longer a four letter word. Buyers' sentiment has shifted. Talk to people at Starbucks and everyone knows someone that just "stole" a house in their area. Investors, once happy to hold a rental home at a monthly loss, are now able to have a strong positive cash flow. Those looking for a home to live in, are able to have a mortgage that is lower than the rent they once paid. Many first time buyers are finding $8000 in form of a tax credit.

These types of forces are dramatically changing the marketplace here in Arizona. Take a look at the market by the numbers on ARMLS in Maricopa County:

Sold residential listings January 2009:    4078

Sold residential listings February 2009:  4725

Sold residential listings March 2009:      6592

Sold residential listings April 2009:       7373

Active listings : 35,000 approx

AWC and Pending sales: 14,500 approx

Once could see that the trend is steady and strong. The number of AWC and Pending sales indicates to me that the number of homes that will sell in May will be an increase over the numbers in April. The Active inventory is shrinking much faster than most would imagine. As we stand today, 1 out of 4 homes that are for sale are under contract. That statistic tells me that we currently have a 3 month inventory level. Most economists would agree that this level is considered a sellers market. Now I am not willing to state that we are in a sellers market due to the number of homes that are selling in distress. However, I do believe that we will see a bounce off of the bottom that will disappoint many soon to be buyers.