We’re start with the justification for this morning’s decision then work our way back into the normal statistics.
When I pulled up the active inventory in the Arizona Regional MLS, I discovered the handful of auction-type listings that once had existed had blossomed into a couple hundred homes. The list price varied from one to the next but more than a few were listed had “list prices” of $500 to $1,000. These represented only the starting bid and not even the reserve required before the lender would sell the home.
Many of the listings also said that no presale of the homes was available. In other words, the homes were not for sale in the traditional sense and only would be available for sale through the auction process. The way I interpret this, the homes are not really for sale in that a prospective buyer cannot make an offer today and negotiate a purchase. For this reason, I consider auction sales to be phantom inventory.
Which is why, to make a long story longer but to summarize nevertheless, I’ve eliminated the auction listings from the inventory numbers. What will this mean? The inventory you see will have declined but, assuming these listings would post as sales later and I won’t be including those sales either, the impact on absorption rate should be minimal.
So here he go … inventory of single-family detached homes in the Phoenix real estate market currently stands at 36,667 (not including the 200-plus auction listings.) There were 3,871 closed sales over the preceding 30 days for an absorption rate of 9.47 months.
(For those curious, the decision to eliminate auction listings took seven total sales out of the numbers.)
On the bank owned side, inventory sits at 9,948 homes in Maricopa County against 2,271 closed sales over the past 30 days for an absorption rate of a still-brisk 4.38 months.
Speaking of which, it was rather interesting to see some expired bank owned listings where the listing agent never marked the property as an REO. Given that bank owneds are the first (and only) type of property many buyers look for, how stupid do you have to be to sabotage a potential sale by not checking the “Lender Owned” box on the listing?
But I digress …
As always the details for the various cities and towns in the Phoenix real estate market are below. And also as always, all data is provided by the Arizona Regional MLS and is deemed reliable but not guaranteed.
[tags]Phoenix real estate, absorption rate[/tags]