It's even more interesting to compare not just the Phoenix Metro median homes sale prices to previous years but actual per square foot median sales price. 

Price Per Square Foot	Nov. '06	Nov. '07
Single Family Homes	$ 157.0	$ 137.1
Townhomes	$ 149.6	$ 162.3

The median single family home price in Greater Phoenix in November 2006 was $259,000 and in 2007, $240,000. 

The median home square footage last year was 1,650 square feet.  This years median square footage is 1,750. 

The median home price decreased by 7.4%.  The median per square foot price decreased by 12.7%. 

Looking at the square footage in conjunction with the median home price gives a clearer picture of the market.  Of course this is a general view; each neighborhood has its own performance numbers.