The absorption rate for the Phoenix real estate market crept slightly higher this week to just shy of 17 months. Inventory is up by a net 100 homes and sales were down by about 25 homes over the preceding 30 days.
One of the big questions still unanswered is what is going to happen to the high levels of inventory – nearly 41,000 single-family detached homes are for sale in Maricopa County. This is the time of year when inventory usually declines, but it appears the number of lender-owned properties on the market may slow the fall descent.
Sales also remain slow and pricing appears to be less of an issue. There are more and more homes priced at around the $200K mark in a variety of areas, with several communities now home to newer homes in the $150K range.
There does appear to be a lingering perception that credit’s not available, which is rather inaccurate. Alt-A has started to come back and loans always have been available for those with good credit and cash to put down on a home.
NAR’s recent observation that many “creditworthy” individuals had been denied credit essentially was bunk; if you’re credit worth, you get the loan. If you’re not, you don’t. But I will say there are many potential buyers who could qualify who may not even be making the attempt out of residual fears over the recent credit crunch.
As always, click on the marker for a city or town to see the latest inventory and sales numbers. Also as always, all data is provided by the Arizona Regional MLS and is deemed reliable but not guaranteed.[tags]Phoenix real estate, Phoenix absorption rate[/tags]