Despite a number of naysayers, the market has in fact shifted from a balanced market (which only lasted a few months) to a gentle buyer’s market. This 
has been caused more by a decrease in demand, than a huge increase in supply. Supply is still growing in most areas, but only slowly.
But viewing the real estate market as a whole is a mistake made by novices. The market can be broken down (and should be) in to sub-categories based on price or area. These microcosms are a better guide to “the market†both for buyers and sellers. Let’s focus for the moment on a few key areas of change.
Strong movement in favor of buyers:
Paradise Valley, Tempe, Cave Creek, Tolleson
Strong movement in favor of sellers:
Gold Canyon, El Mirage, Arizona City, Sun City, Sun Lakes, Apache Junction
So  when buying or selling, the lesson is know your sub-markets!