For the past two years I’ve said raw inventory numbers have little meaning unless filtered against the pace of sales. High inventory really isn’t all that high if it’s being absorbed at an accelerated rate.
Phoenix’s bank owned real estate market is proving that statement.
As of this morning there are 4,299 bank owned properties listed in the Arizona Regional MLS, which is a higher total than we’ve seen over the past few months. And as of this morning, there were 1,041 sales of REO properties recorded over the last 30 days.
The result? An absorption rate of 4.08 months – deep into the territory known as a sellers’ market. Put another way, one out of every nine homes in the MLS is an REO property. And one out of every three four sales over the past 30 days was a bank owned home.
Now … this isn’t to say all bank owned homes are selling quickly. I was reviewing some with a client last week and we were somewhat surprised to see there are many on the market that still are priced above current market values. Though such a strategy might work in a normal sellers’ market, it probably will be less successful in a sellers’ market being driven by prices driven lower by the banks.
Still, there’s less wiggle room to be had on bank owned homes whose list prices reflect the current market. Something to consider when making that offer …[tags]Phoenix real estate, Phoenix bank owned homes[/tags]