In this article, Clear Capital's Home Data Index Marketing Report the "prices in the West dropped 4.5% between December and February while prices in other parts of the nation leveled out. In addition, Clear Capital reported that eight of the 15 lowest performing markets are in the West."
Actually, prices have hel fairly steady in the Maricopa Arizona home market mostly due to the strong buying presence of seasonal buyers (snowbirds). Unforunately, the lenders have been slow to release their backlogged (shadow) inventory and, until last week, the inventory of subdivision homes in Maricopa AZ has been dropping steadily since SEP '10 (see my weekly Maricopa market report). This combination has kept values relatively flet.
At some point in time, the lenders are going to have to release this inventory and regardless of how they do it the majority of "snowbirds" will have migrated back to their hometowns leaving a glut of inventory in the near future. This would seem tp predict a Double Dip on the horizon.