Last year while the rest of the Phoenix real estate market was on a clear decline, especially in the second two quarters, the luxury home market, especially in Scottsdale and Paradise Valley held steady.  That steadiness has, since the beginning of 2008 turned into a decline, especially for entry level homes in Paradise Valley.

Here is the activity from the first of May 2008 to mid June.

Active Homes in Paradise Valley,  453 and an average of 227 days on the market.

34 Homes are pending.  These homes have been on the market for an average of 212 days.

26 Homes sold in 45 days bringing  the inventory supply to 26 months.  The homes that sold in Paradise Valley were on the market an average of 271 days.

What is interesting that the sales price compared to the sold price is 92% but looking deeper we see that the true price reductions, of which there can be several in the "on the market" time of a home is much greater bringing the true sales to list price to 78%. 

The greatest declines percentage wise were for homes in the price range of $2,500,000 or less while homes in the price range above that had lower declines percentage wise.