Inventory rose back about 8,000 yesterday. While in and of itself that means little, since the 8,026 almost certainly will fall back below the 8,000 mark tomorrow once the weekend’s sales are logged into the MLS, it does at least indicate something vaguely resembling inventory stability. We’ll see how that shapes up as the month moves on.
Okay, I lied … two more notes today.
It was suggested in the comments on a post I wrote on Phoenix Real Estate Guy that my inventory figures are misleading because I’m not including homes listed as either Pending or Active with Contingencies. Both of those statuses indicate the seller already has accepted an offer and there’s a legally executed contract in place. Yes, you can still look at these and even write a backup offer which, in many cases, then will rest on the bottom of the pile of already existing backup offers unless this happened to be the one home in the Valley where multiple offers were not received. (Talking about the $150ish and under crowd here.)
Since I’m not the kind of person who places bids on the items in someone’s shopping cart as they already checked out and are walking to their car, just in case they decide to return the item, I’m not much for considering homes under contract to be homes available and for sale.
And the last note … as I visited some clients who just moved into their new spec home, they mentioned that the folks at the sales office has said they now were being limited to selling no more than two homes a week because construction can’t keep up with demand.
The two-a-week idea brought back memories of 2005, where lot lotteries were the norm. I would think (and hope) we’re nowhere near that point now. And, if the local, construction-based economy is as rough as is thought, it should be fairly easy to locate subcontractors to get the needed work done. It feels a little but like artificial demand being created though, as the esteemed Jeff Brown mentioned to me yesterday, that would be a rather short-sighted course of action – low interest rates, low prices and an election in the fall – sell while the selling’s good.
I tend to agree.
And that’s it from here. Off to fulfill my wife’s wishes, which mostly consists of leaving her alone while she watches RuPaul’s Drag Race.