Prices are down, but  activity is humming.   MLS inventory of homes for sale continues to decrease a little each day, as the new listings coming to market are fewer than those going under contract.  In one popular community, there are about 11 homes that are active, and another 23 that are under contract.  Most homes under $500k in this particular area sell within days or a few weeks, a complete about-face from activity of 2008 and 2009.  Positivity in the news:

• “Phoenix area homes sales….hit the highest level for that month in 6 years” (NuWire Investor, 7/7/11).
• June home sales “frenzied” with the median price climbing to $118,950; “Supply continues to drop while demand is extremely strong,” Mike Orr in Phoenix Area housing market gaining ground, new data show” (azcentral.com 7/8/11).

Summarized major points in the latest ARMLS Stat report (7/6/11):

• Sales surged 13.5% in June  and were 19.9% higher than June 2010.
• Last month’s sales of 11,125 were higher than the two biggest sales months during the boom of 2005 (10,252 in June and 10,031 in August, 2005).
• Available inventory continues to decline.  As of today, there are 21,239 active listings – down from the  22,901 reported  June 13th.
• Median and averages sales prices increased slightly in June, but remaining essentially flat since December.  The average sales price is predicted to drop to about $158k over the next 3 months, based on ARMLS pending price index.
• Foreclosures pending  was 27,616 in June, dropping 9.51%; this number trending down since November, 2009 (when it was at 50,568).  Lender owned sales  also continues a downward trend.