Knowledge@W.P. Carey has put our a very informative look at the current real estate market and how it relates to the Arizona's most severe downturn in the 1980's.

"As of February, home prices had declined for 11 consecutive  months and there is a good change the state will surpass the old record set almost two decades ago,.."  

This record was 17 months states the report.   It also notes that this downturn is more severe.  Severity is different from city to city as is affordability.  Some cities in the valley are more affordable then others.

A note of interest is that while many of the cities have become affordable there are "...other factors such as the availability of mortgage financing or concerns about job stability may be "bigger impediments to recovery in the housing market than price of housing."

This is something we have clearly seen with many buyers who would definitely like to buy, but despite descent credit are having a difficult time obtaining loans.