Local home price and sales update

I am able to offer some updated news on home sales and prices.  The data is from The Cromford Report for Greater Phoenix, however our ZIP code, 85255, was one of the most active ZIP codes in the three price categories mentioned:
$200-$400,000.  Supply dropped 3.3% in the last month and is down 10.4% in the last three months.  Foreclosures and short sales are falling too. Demand is also up.  Sales rose 11.4% in the last month.  inventory has falen to 156 days.  Cromford says: "the sector remains stable and the short term outlook has turned slightly positive".  Price per Sq. Ft. down 2.2% (3mo)
$400-$800,000.  Supply is down and demand up. Supply is at 8.4 months compared to 10.2 months on January 26th. Foreclosures took 15% of sales; Short Sales 23%.  However, "normal" sales now make up 76.4% of active listings which is encouraging.  Short term outlook is positive, Cromford describes this sector as in"..long slow recovery mode". Price per Sq.Ft. up 0.6% (3mo).
>$800,000.  Supply down, but demand still week.  Distressed property prices per Sq.Ft. the lowest in ten years.Actual sales prices are 71% of list, demonstrating unreasonable expectations on the part of sellers. Which may be why average days on market is 284 days.  Things are more likely to improve than get worse but low demand still a concern.