Phoenix – November 8, 2006—The red-hot Phoenix area real estate market showed definite signs of a slowdown in the second quarter of 2006, with home values in the area declining one percent from the prior quarter , according to Zillow.com. Despite the recent decline, homeowners in the Phoenix area (Maricopa and Pinal Counties) are still well ahead of last year, with year-over-year appreciation at 9.6 percent (and significantly higher than the national year-over-year appreciation of 5 percent). The Zindex™ home value indicator dropped from $267,120 to $264,215 between the second and third quarters of 2006. The Zindex is Zillow’s measure of the median value of all homes in the area (not just those that sold). The values of single-family homes in the Phoenix area declined sequentially in the third quarter with a Zindex of $280,362—down 1.74 percent from the prior quarter, but up 7.8 percent on a year-over-year basis. However, the condominium market increased in the third quarter—up 1.17 percent from the prior quarter, and an impressive 17.7 percent year-over-year. According to Zillow’s data, the condominium market in the Phoenix area produced a Zindex of $191,207—up from $188,996 in the prior quarter. “The Phoenix market is definitely cooling down as shown in the negative one percent sequential quarterly change in the Zindex,