Despite the September surge, sales of existing single-family (detached) houses were still the second-lowest for a September in eight years. Single-family home sales have risen on a year-over-year basis for three consecutive months.

The median price paid for all homes sold in the Phoenix area was $178,607 in September. That was down 6% from $190,000 in August and down 24.9% from $237,900 a year earlier. September's median was 32.4% lower than the peak $264,100 median in June 2006.

Another gauge analysts watch suggests sharper price declines: The median paid per square foot for resale houses fell to $99 in September, down 35.2% from a year ago and down 42% from a peak $171 in June 2006. September's figure was the lowest since $98 in January 2004.

The median sale price - the point where half of the homes sold for more and half for less - has plunged for several reasons: Widespread home price depreciation; higher prices and qualifying standards for "jumbo" mortgages, which has undermined higher-end sales; and buyers' preference for discounted foreclosures.

About 51% of the Phoenix-area houses and condos that resold in September had been foreclosed on at some point in the prior 12 months.

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