Another week, another 1,000 fewer homes on the market here in Phoenix.
As of this morning there are 28,487 single family detached homes for sale in Maricopa County, a decrease of 1,187 homes from a week ago. Closed sales over the past 30 days in the Phoenix real estate market increased by just over 100 from last week’s report for an absorption rate of 4.84 months.
Between five and six months of inventory is considered a balanced market. Anything more and it’s a so-called buyers’ market, where the buyers hold the upper hand. Anything less and it’s a so-called sellers’ market, where the leverage belongs to the seller.
Actual mileage may vary, but right now on a macro level the Phoenix real estate market is back to being a sellers’ market.
For bank owned homes, there are 5,738 single family detached homes active here in Maricopa County and there were 3,960 closed sales over the past 30 days. The absorption rate on REO homes now is at 1.45 months – just under six weeks of inventory remaining.
While the foreclosure moratorium imposed by most of the larger lenders on owner occupied homes has stemmed the tide of listings, it hasn’t completely eliminated new REOs from coming to the market.
Since January 1, there have been 15,096 new bank owned listings to hit the Phoenix real estate market – 4,178 have sold, 5,351 remain active and about 1,000 have expired or been canceled. The other 5,000 currently are under contract awaiting closing.
If anything, there’s too little bank owned inventory on the market given the current pace of sales but that’s another story for another day.
One last note … inventory for non-bank owned homes continues to fall as well. We’re at 22,749 non-REO properties for sale in the Phoenix real estate market, down 500 from last week. Closed sales over the past 30 days were at 1,920 – a slight increase from a week ago – and the absorption rate is down to 11.2 months.
There’s more to the story here, too, but it will have to wait until later.
As always, details for the various cities and towns in the Phoenix real estate market are listed below. And also as always, all data is provided by the Arizona regional MLS and is deemed reliable but not guaranteed.[table=46] [tags]Phoenix real estate, absorption rate[/tags]