Arizona State University has the September numbers out for the Phoenia area. "In September 2005, the local resale home market began to slow down with 9,815 recorded sales leading to 4,875 recorded sales in September 2006. This is the lowest monthly level since 4,090 sales were reported in February 2003, and the lowest September since 2000, with 4,134 sales."

"So far in 2006, there have been a total of 52,390 sales, while it stood at 88,750 sales in 2005 year to date."

"For the first time in the last 10 years, the year-to-year median home price has declined from last year's $263,000 to $256,900, while it was $264,900 in July 2006. The record to date was June 2006 at $267,000."

"Although the median home price showed a decrease from a year ago, mortgage interest rates are higher than a year ago, 5.5 percent versus 6.0 percent for September 2006. Thus, affordability continues to be an issue. Based on an 85 percent loan-to-value, the monthly mortgage payment for the median price home increased from $1,270 to $1,325."

"'Even though mortgage interest rates have been declining for the last few months, limited home appreciation and household income continues to raise concern about the ability of some homeowners to maintain their homes,' said Jay Q. Butler, director of the Arizona Real Estate Center at ASU. 'This may be especially evident for those that have used some of the more creative financing instruments, such as option payment plans and initially low interest rate adjustable mortgages.'"

"Townhouse/condominium sales activity showed a decrease from 1,100 sales for August 2006 to 930 sales for September, which was below last year's 1,770 sales. So far in 2006, there have been 11,280 sales, while there were 16,575 sales a year ago."

"For September 2006, 14 percent of all recorded sales were for homes priced from $125,000 to $199,999, 46 percent for $200,000 to $299,999 and 37 percent for homes priced over $300,000. Last year, the distribution of all recorded sales was 29 percent for homes priced from $125,000 to $199,999, 34 percent for $200,000 to $299,999 and 32 percent for homes priced over $300,000."

The Arizona Daily Star. "An investment partnership is planning to spend more than $112 million to buy 11 Tucson-area apartment complexes. Jerry Finney, one of Bascom's partners and a manager with Multifamily Advisors, said apartment complexes in Arizona have become a better investment as home prices have soared."

"'Two years ago, people could buy a house for less than they could rent an apartment. Well, those days are gone,' Finney said."

"Such large apartment deals are rare for Tucson, said Omar Mireles, executive vice president of HSL Properties, Tucson's largest apartment complex owner. With thousands of apartment units converted to condominiums in the past two years and few new complexes slated for construction, rents should continue to rise, he said."

"At the end of the second quarter this year, the average Tucson rent was $591, according to David Wesson's calculations. A year before, it was $573."

The Arizona Republic has this update. "Mesa single family home resales dropped 14 percent last month, compared to August. The month was down 57 percent from September 2005."

From Commercial Property News. "Multi-family developer Wood Partners shifted its new Phoenix residential development from condos to luxury apartments with the opening and leasing of the project starting this month."

"As the housing explosion that occurred during the last few years in the Phoenix metro begins to slow, apartment owners find themselves in a very favorable position, according to the Marcus and Millichap. As new residents move to the Phoenix metro, they are finding a widening gap between mortgage payments and asking rents, making renting an attractive option."