Today’s short version: inventory is falling and sales are up in the Phoenix real estate market.
As of this writing there are 34,192 single family detached homes for sale in Maricopa County, down a couple of hundred from a week ago. Sales are up by nearly 300 to 4,488 from a week ago for an absorption rate of 7.62 months. Still not in the range of a balanced market, which is five to six months of inventory, but edging closer.
In the bank owned arena, there are 8,564 homes for sale in the Phoenix real estate market, which is down just under 100 from a week ago. Sales over the past 30 days eclipsed the 3,000 mark for the first time at 3,040 for an absorption rate of 2.82 months.
Put another way, at the current sales pace, if no new bank owned properties came to the market all of the current homes would be sold within the next 85 days. That’s not really going to happen, of course, but it gives a little perspective.
There are two dark clouds that continue to hang over what otherwise would be some sunny news. First, the absorption rate for non-REO properties is sitting at around 17 months and change. So if you’re a traditional seller needing to offload your property, you’re more or less stuck unless you’re ready to fight the bank owned homes on price.
And second, the continued attraction to bank owned homes is price so even with the increased sales and decreasing inventory, severe pressure remains on home values.
As always, all the details for the various cities and towns in the Phoenix real estate market is 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]