With all of its scenic beauty and growing industries, it is no wonder that Arizona is the second fastest growing state in the union. In spite of the national housing market slump, the Arizona real estate market has seen an upturn in recent months. The Arizona Republic reported a rise in home sales in February 2008 after months of decline. According to the Republic, many people are taking advantage of foreclosure sales in the Grand Canyon State, which may be helping the Arizona housing market improve ahead of the rest of the nation. If you are thinking about buying real estate in Arizona, here are some vital facts about the Arizona real estate market:

Statewide stats

According to real estate blogger John Wake (www.arizonarealestatenotebook.com), the median home price in Arizona dropped by $6,600 to $213, 400. Wake attributes a relatively small increase in homes for sale between February and March of 2008 (1% compared to lasts year's 4% over the same period) to the decline in median home values, which may “discourage home sellers.” The Wall Street Journal reports that the homeowner-vacancy rate (the number of vacant homes on the market) for Phoenix and Tucson are 3.7% and 2.2%, respectively. By comparison, Orlando, Florida has a 7.4% homeowner vacancy rate; Poughkeepsie-Newburgh-Middletown, New York's is .1%. Arizona's major cities sit right in between these two extremes.

Median home value in Phoenix

While in mid 2007 the median value for a home was $265, 000 according to a report by Arizona State University's Morrison School of Management and Agribusiness, that number fell to $220,000 in February 2008. Median home values vary greatly by area in metropolitan Phoenix. For example, the median home price in Paradise Valley is $2,270,000; a far cry from that of the Maryville area of Phoenix ($157,700 in January 2008). Suburban Scottsdale has a median home price of $513,750 (down from $600,000 in 2007).

Median home value in Tucson

Tucson is well known for its abundant sunshine, and experts say the Tucson real estate market is also brightening ahead of its national counterparts. Median home value here was $249,900 as of March 24, 2008, according to housingtracker.com. Tucson real estate blogger David Smith called Tucson's real estate market “strong” despite a nationwide slump, with home sales reaching 710 in February, 2008 (in January that number was 594).

Median home value in Flagstaff

At 7,000 feet above sea level, the elevation is not the only thing about Flagstaff that is high. With a median home value of $339,700 as of March 24, 2008, according to Yahoo! Real Estate, home prices in Flagstaff top those of many other Arizona cities. It must be all of those spectacular mountain views.

Median home value in Mesa

The city with the third largest population in Arizona, Mesa is also one of the fastest-growing cities in the US, according to the Census Bureau. It is considered a suburb of Phoenix, the most populous city in Arizona. At $292,700 Mesa's median home value is higher than that of Phoenix.

Median home value in Yuma

It is not just scorched desert in Yuma, a city that sits near both the California and Mexico borders. According to William Pentland of Forbes.com, the Yuma Proving Ground, the Department of Defense's main desert warfare research facility, is helping Yuma become a top tech city. Tech jobs at the facility may explain why Yuma is, Pentland writes, the third-fastest growing city in the country. With a medium home value of $197,400, lower house prices may be another enticing perk for tech workers.

Median home value in Glendale

The fourth largest city in the Grand Canyon State, Glendale sits about nine miles northwest of Phoenix. Known as “Arizona's Antique Capital,” Glendale has a medium home value of $313,800, according to Yahoo! Finance.

A Buyer's Market

Given the high volume of people flocking to Arizona, as well as the amount of foreclosure sales in the Grand Canyon State, the time may be right for you to buy real estate here. You can find great deals in any of these cities, though probably not for long.