One of the challenges the real estate market has before we can get some marked improvement is the reduction in the inventory of available homes listed for sale. 
However, that challenge is faced by the fact that most people who buy a new home (thus helping to reduce inventory) have a home to sell; and thus, we come full circle and are back to the begining, with the difficulty in selling homes. Economists call this being in a box.
However, most of us look at it as which comes first the chicken or the egg.
I do think there are reasons to be positive and reasons that we may see some increased listed homes sell and increased levels of buying. One of the facilitators is buyers getting such a good price on the buy side, that they are willing to take an offsetting hit on the sell side.
Gregg Perry of the Seattle Real Estate Professionals Blog, wrote and excellent article about Buying Up in a down market . I recommend you read the article. However, to summarize, the house you need to sell may sell for $50K less than you hoped. However, the house you wanted to buy may very well be $50K or more reduced from previous levels. Thus providing a net of the same; more importantly facilitating the transaction for which you wished.
Now, Gregg Perry points out and is important to note that this is not always a perfect science; In concept, it makes sense. However, It is important to realize that it...
only works if your selling price is moving in lock step with the new buying price.
Make sure you sell your home first. Especially, here in Phoenix and Scottsdale.
Remember, you cannot control the price a selller will pay. However, you can control the price you pay. Thus, only after you sell your home. Evaluate the less amount you had hoped to receive and make offers with that in mind. You may very well own the new home at a less amount to offset the monies you had hoped to receive when you originally listed your home.
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