The small multifamily income market in Maricopa County, sale have been on the rise over the last few months.  In October 27 such properties sold.  That is a small increase over 21 last month but a large increase over the low of 9 in February 2008.

Total inventory -tough still very high- is down as are the new listing to the market.  Total supply is at 23 months. 

Sales are up mainly because prices have come down to a point where many properties make sense as investments in this type of market:  there is little chance of appreciation for at lease several years so investors must get their return through cash flow and the only way to improve cash flow in a stagnant rental market is to decrease the price and this is precisely what has been happening.  Not only are normal buyers decreasing the price but the large number of REO or foreclosed properties are very low in price, though some lenders are keeping prices unreasonably high.  I suspect will see this trend continue for a while.