In Greater Phoenix it's primarily REO's that are being sold: 67% of all sales in January.   As you move up the the price bracket REO sales decrease but they are still high: even in the Biltmore area and the Arcadia Neighborhood.  I start out with the REO's because they play such a significant part in the market now. 

In January 43%-45% of homes sold in the subject areas were lender owned.   30%-36% were pre-foreclosure sales which include short sales.  So about 80% of all sales were distressed sales: that is significant. 

It's not that there are no normal homes for sale: 70% of the homes for sale are normal, it's that lenders want to remove real estate from their books and sell it for less drawing in the buyers.

Lets take a look at sales for each neighborhood individually.  All data is for single family homes from the ARMLS.

Arcadia.

5.7 % of the supply sold in January putting supply at 17.6 months: still high and still in buyer market territory.

A high supply is driving the prices down, especially the supply of 23 lender owned homes in Arcadia plus 36 pre-foreclosure some of which will come back as REO's for a lower price in the near future.

Expect pricing pressure to continue throughout 2009, especially since this is the year of foreclosures.

Biltmore:

The median price in the Biltmore area is down significantly: it's lower by 59% per square foot and 33% based on annual median price.  That's a huge drop over just one year. 

In reality it's lower because higher price homes sales as a percentage of all sales is down so there are more lower priced homes selling brining the price median price down: it does not mean your home dropped 59% in value.

The supply is high at 17.4 months.  This is up a lot over last months 8.8 months and 14 months last year.  So just like Arcadia prices will probably slide down a bit further