Supply and Demand. . . The qualities that drive pricing in every economy are doing so this month in the Phoenix housing market. The struggle for buyers is competing for properties under $160,000.00, since supply in this price range is down by 40% from this time last year! Supply for properties for sale between $160,000 and $200,000 is down 20%. Buyer activity is still good in the first quarter of 2016, despite the limited supply, due to the interest rates remaining low.  Consumers who waited the required 4-7 years after a short sale or foreclosure, are now able to purchase another home.  Despite the overall 7.5% decline in supply, the number of competing listings over $200,000 has increased 5% compared to this time last year. This increased supply has kept annual appreciation more subdued in the higher end of the spectrum.