Here's a look at Phoenix area home sales and inventory (thanks bubbletracking). Looks like about 10 months of inventory to me at the current rate.
You might want to check out Phoenix median asking price too, which has fallen $50,000 from August 2005 to now, from $379,900 to $329,900.
So what's going on out there in Phoenix? Are homedebtors giving up at this point, pulling or postponing their listings and waiting for a better day (which won't come)? Will dead inventory owners start slashing their prices now on a race to the bottom?
Most importantly, how much longer will it take to clear away that 52% speculator-driven rise in 2005?
That's still an awful lot of supply and anemic sales. Plus builder dead inventory and FSBO's that aren't recorded here.