It’s been a while since I’ve posted inventory numbers for the Phoenix real estate market and in the passing weeks not a great deal has changed.
There are 20,330 single family detached homes for sale in Maricopa County and there were 5,885 closed sales over the past 30 days … all of that means we have about 3.45 months of inventory, up less than half a month from the last update that I provided in September.
Only 2,697 of those 5,885 sales were of bank owned homes, which is low. Another 1,185 are listed as short sales, which seems borderline unbelievable given most lenders continue to be clueless if not antagonistic when it comes to these listings. Do the math and you’ll see 2,031 of the sales were non-bank owned and non-short sale listings.
Check that again … 45 percent of the sales were bank owned, 35 percent of the sales were neither bank owned nor short sales. Go back a month and more than half the sales were bank owned, with traditional sales hovering around 30 percent of the market.
My hunch is the investors who are purchasing homes at auction, fixing them up and then putting them back on the market are having some impact on the sales. There are limits to what kind of impact there can be since these homes are ineligible for FHA financing for 90 days after the investor purchase – a contract can’t even be written until day 91 – but this niche market is having a bit of an impact.
One other interesting note … as of the moment, there are 2,696 detached bank homes for sale in the Phoenix real estate market meaning there’s almost exactly one month of bank owned inventory for the sale, which is higher than we’d seen previously.
For those used to seeing the inventory figures … it’s been both odd and liberating not to run them every week. As you probably surmised from the jumping days from week to week, running the numbers for 25 different cities had gone from interesting project to chore and once anything becomes a chore it’s hard to sustain much personal interest.
Once this little bit of malaise passes the numbers may come back as well, assuming there is something of interest to report. Truth be told, there’s been so little change since the first shock in April that showed activity had turned a corner, it’s become difficult to find new ways of saying “this isn’t a buyers’ market anymore.”
Except the entire Phoenix real estate market isn’t a buyers’ market. Bank owned homes certainly aren’t, which doesn’t stop agents from writing extremely low offers thinking the banks will give homes away. Traditional sales are to some degree, though much of that depends on the price and the sellers’ motivation.
If anything, the Phoenix market is more stratified than ever. And maybe that’s where the next project lies, in finding the best possible way to illustrate that stratification to help you make more informed decisions about real estate here in the Valley.[tags]Phoenix real estate[/tags]