by Calculated Risk on 2/11/2014 04:54:00 PM

Another "bubble" area that has seen rapid price appreciation over the last two years. Now sales are declining and inventory is increasing.

The Arizona Regional Multiple Listing Service reported Statistics for January

• Total Sales are down 17.1% year-over-year.

• Distressed sales are down 59.6% year-over-year.

• Active inventory is up 28.9% year-over-year.

Inventory has clearly bottomed in Phoenix (A major theme for housing last year). And fewer distressed sales - probably less investor buying - and more inventory means price increases will slow.