The Phoenix real estate market is beginning to show signs of life again. Jay Butler, director of Realty Studies in the Morrison School of Management and Agribusiness at Arizona State University's Polytechnic campus, says as the prices have dipped to 2005 levels, April sales responded with the first upward swing in as many years.

"For the first time since July 2005, the local resale housing market has posted year-over-year improvement," according to an online piece from Arizona State University's Realty Studies department. Phoenix home sales jumped year over year by 15 percent. "April had 5,585 recorded sales in contrast to 4,855 sales for a year ago and 4,335 sales in March 2008," according to the report.

As markets go, when real estate prices escalate quickly -- say in the double digits -- it creates a feeding frenzy as consumers join the herd in running toward a good deal. This is what happened in Phoenix in the early 2000's, before it reached a saturation point. Buyers disappeared and prices depreciated. As in many markets where job growth has continued, but the desire for housing was stymied by high prices, consumers rented. Now, with prices backing down, renters may be making a comeback to the sales market.

Foreclosures have played a large part in the price reductions, according to Butler. Foreclosures now make up 44 percent of all houses selling under $200,000. Last year, those homes made up only 16 percent of the market. Butler says, the most evident impact of lower prices is improved affordability.