For months the Luxury Real Estate Market in Phoenix Arizona has pushed on strong despite Maricopa County's sales velocity being down 70% from the high's of 2005. But that too is starting to slip and pricing pressure increasing due to high inventory levels...

Sales of Million Plus Dollar homes in Maricopa County in the 1st quarter of 2008 was down to 284 units - down 40% from 2007's 478 units over One Million.

There are nearly 4000 homes actively listing for sale in the Phoenix Market priced over one million. In Phoenix Suburb Ahwatukee, only 2 homes have closed escrow with a sales price over 1 Million thus far in 2008 - down significantly from 2007.

While all of this could turn into a mere blip on the radar, it is possible that the once immune luxury market will continue to cool off due to rising inventory and tightening credit markets making it more difficult for buyers to obtain creative financing solutions. 

It will be interesting to watch developments in second quarter of 2008.