Here in Phoenix, homes are still selling at a good pace. In all likelihood, the Phoenix market is skipping along the bottom in terms of sales velocity. However, with high inventory rates, there continues to be downward pressure on home values and as a result, home prices are still in decline mode. 

The most common mistake that home sellers and/or their agents make is "following the herd". Despite what the media says about market conditions, the highest value, best priced homes (the top 10%) are still going pending at a healthy pace...and often quickly! These are homes that are priced well from day 1 of activating on the market. Where home sellers fail is pricing their home in the same cluster as everything else. Sooner or later an well-educated (in market conditions) seller (and their agent) will come along, price well-below the cluster and go pending quickly...then "the herd" slowly, often begrudgingly lowers their price to what was once a value for the neighborhood - at this point the price adjustment is often too late...it becomes the new baseline and no longer perceived to be a value or "steal" to buyers.

Go lead the herd!