Foreclosed homes accounted for 37 percent of the total activity in the Phoenix metro real estate market in July — down from February when foreclosures represented 51 percent of the sales.

Although prices in metro Phoenix dropped 33 percent in May compared to May 2008, the rate of decline once again slowed, adding another month to an improving trend in the market, according to the ASU-Repeat Sales Index (ASU-RSI).

What does the trough of a real estate slump look like? Phoenix metro area property owners will have time to take a close look at this unpleasant and hazardous landscape as the real estate market slides to the bottom over the next several months — and settles in for a slow, volatile recovery.

From seasoned real estate writer Steve Bergsman comes this message: Proceed with caution, be patient and realize that there are many kinds of real estate markets — each with particular potentials and pitfalls.

Sales data from March indicate that a trend change in housing prices might be underway in the beleaguered Phoenix metro market.

An anemic economic recovery will begin at the end of the year, but don't expect the pain to end anytime soon.

Phoenix metro real estate prices declined 37 percent in February compared to February 2008, but preliminary data for March and April show that the rate of decline may be slowing.

Arizona real estate markets tend to swing wildly. During boom periods, home prices accelerate precipitously, but when the bubble bursts, residential values sometimes slink all the way back to the price level at the start of cyclical upturn.

The 13 economists who track the real estate construction industry for the Greater Phoenix Blue Chip Economic Forecast are projecting that the metro area's residential market will bottom out in 2009, however down times will continue on for the multi family and commercial sector.

Malaise in the economy is slowing down the arrival of relief for Phoenix real estate and lengthening what is already a record-breaking run of declining prices, according to an analysis of the Arizona State University-Repeat Sales Index (ASU-RSI).