It’s not just bank owned homes seeing a spike in activity in the Phoenix real estate market. Granted, it’s hard looking past that segment since that seems to be where most buyers start and it’s the fastest-moving portion of the market. But the market’s also improving for traditional sellers as well.
As of this morning there are 23,818 non-bank owned single family detached homes for sale in Maricopa County. Over the past 30 days, there have been 1,835 closed sales of non-bank owned detached homes. The result is an absorption rate of 12.98 months – if nothing new came to the market, the current inventory would be gone by next May.
True, that’s not the greatest news in the world. But consider the absorption rate for non-bank owned properties since the start of the year:
- January 1 – 13.92 months (following the 12/31 expiration inventory drop)
- January 6 – 16.70 months
- January 15 – 18.60 months
- January 21 – 21.30 months
- January 27 – 21.86 months
- February 3 – 21.99 months
- February 10 – 22.54 months
There’s the climb … the numbers since:
- February 24 – 20.79 months
- March 4 – 19.11 months
- March 11 – 17.70 months
- March 18 – 16.24 months
- March 24 – 15.72 months
- March 31 – 15.06 months
- April 7 – 12.98 months
This is the point where I’ll give you the old mutual fund disclaimer that past performance isn’t indicative of future results. In other words, just because the market’s gaining some momentum now means that won’t change tomorrow. Or, since closed sales are a lagging indicator – the contracts were written a month ago, give or take, so it tells you how the market was more than how it is – it doesn’t mean things already have changed.
But on the face of it, it appears the spike in bank owned sales is a tide that is raising all of the boats in the Phoenix real estate market.[tags]Phoenix real estate[/tags]