[Andrea Messenger]

The market conditions will certainly vary for each market, although it does appear that the national trend certainly favors the buyer. I know in Phoenix, there is no question that it is a buyer's market.

In 2005, we had around 9,000 listings in our MLS and most homes selling within days at or above list price. Now, we are averaging 46,000 to 48,000 listings and depending on the area, an average of 6-12 month supply of homes. Some of the outlying cities can be 2+ years supply.

I hear many people from other areas of the country saying that it is taking a while to sell homes and things have slowed down everywhere.

On a national level, I think the problem with our market "craze" around 2005 was partially due to the super low interest rates and bad mortgage products (interest only loans and ARMS were over-used and abused). People bought more house than they could afford and we had many, many investors and 2nd homebuyers purchasing property.

Now, all those folks that didn't sell before the slow-down are realizing that they can't afford the home they're in or can't afford the extra homes they bought.

In the Phoenix area, approx 45% of our current inventory is vacant!!! That is almost half -- just sitting vacant. That speaks volumes about one major reason why we are in a buyer's market. I would like to know what vacancy rates are in other markets.

Not to mention the other issues going on now such as Builders are outselling resales because of financial incentives and up to 10% REALTOR commissions.

It is tough to try to sell right now -- especially if you bought high within recent years and now have to sell low. Anyone else predicting an upcoming foreclosure market???