Most of the article is behind a pay wall but you can see this.

The Phoenix housing market is defying conventional economic theory.

Inventories of homes for sale are low, falling 41% to 21,304 in October, compared to 35,732 at the same time a year ago for Greater Phoenix, according to the Cromford Report, a market research firm in Mesa, Ariz.

The number of home sales is rising—to 6,428 in October from 5,443 in same month a year ago, according to the Cromford Report. The city’s unemployment rate is inching down and is below the national average.

The laws of supply and demand suggest housing prices should be rising, or at least stop falling.

My bolding.

Articles like this are the beginning of a change in the conventional wisdom towards Phoenix real estate. In a year, or more likely two, from now, the conventional wisdom will be that Phoenix home prices are increasing and as that happens the entire real estate market dynamics will change.

People are going to have a hard time swallowing the Phoenix real estate recovery story no matter what the data say because most of the country will still be going through real estate pain.

The Phoenix real estate market was one of the first to tank and it will be one of the first to stop falling and start rebounding.