Sales over the preceding 30 days moved closer to the 2,000-mark, well below any 30-day period so far this year. Inventory in the Phoenix real estate market also has climbed above 41,000 single-family detached homes, leading to an absorption rate just shy of 20 months.
I’ve talked in the past of phantom inventory – homes priced so far above prevailing market trends so as to be virtually unsellable. Not that this prevents many sellers from convincing many agents to “just try” a certain price and reduce later.
This way of conducting business came up during a relocation certification class I attended this morning. It was mentioned that the great relocation gods that be check to see what percentage of listing presentations convert into actual listings. It is fear of this percentage which likely leads agents to inflate suggested list prices; I decided a while back that I’ve got no use for overpriced inventory on my own sheet of listings.
Many agents will suggest a higher price and include automatic price reductions. Having done that before getting smarter, what usually happens is the seller begins spending the dollars from the higher list price and ignoring the time you spend telling them their house will not sell at their desired list price.
While phantom inventory is one issue, bogus and fully-invented list pricing is another issue at this point in time. I’ll be attacking this on a later post but there’s a growing trend as short sales increase to place low list prices on homes knowing full well the bank may not ever accept even a full price offer. How this is allowed to continue, I have no idea.
Then again, our Arizona Regional MLS also puts time shares in with the regular property entries. Such is life.
As always, you can click on any marker for details in the given town or city. And also as always, all data is provided by the Arizona Regional MLS and is deemed reliable but not guaranteed. Definitely not guaranteed.
[tags]Phoenix real estate, absorption rates, MLS[/tags]