The upward price trend that started back in September of 2011 has continued and gained strength thru March 2012.
Believe it or not the overall supply is down 64% from 12 months ago. Distressed or bank owned inventory is down by 82%. The lower end homes have been affected the most, with many of these homes recieving multiple offers. I have heard of 40+ offers on a single home in less than a week. This is due to the tightening supply. Home buyers and investors are having a very difficult time aquiring properties. In my opinion the Arizona Real Estate market hit bottom quite a few months ago and is now well on its way to recovering.
The good news is that mortgage rates are still very low around 3.8% ! Most homes on the market are still below replacement cost. There are also plenty of high end homes available. Now is still a great time to buy, you just need a good Realtor and patience.