My Realtor friend, Jay Thompson, has a great post breaking down the metro Phoenix real estate market into bank-owned (foreclosed), short-sale (pre-foreclosure) and private-sale (normal).

The bank-owned market is currently tighter than the bark on a tree, only 1.5 months supply according to Jay’s chart.

The other two markets are not tight by any stretch.

Nevertheless, with such a tight supply of bank-owned properties, we will likely see the end to the free fall in home prices in metro Phoenix, Arizona. However, that doesn’t mean the median price for non-bank-owned homes won’t continue to fall.