We are seeing a pickup in the AZ real estate market a little but not in prices. Rates are still low, rentals are filling up about as fast as they come on the market and home prices are very competitive for any first time home buyer ready to go. The homes on the market don't seem to be as well maintained as they once were. It seems like people just don't have the pride of ownership they once did. Short sales are abundandt and still a challenge. You just never know what the banks will say when it comes to the end of the deal. Will they want a Note from the seller, will they accept the offer from the buyers or will they counter for more money. Every deal is different so if you are buying a short sale just expect the unexpected.