Phoenix Real Estate Inventory Update: March 25

Jonathan Dalton, Phoenix Real Estate AgentInventory of single-family detached homes in the Phoenix real estate market crept above the 40,000 mark for the first time since late November while sales moved slightly higher over the preceding 30 days.

As of this morning there are 40,068 single-family detached homes for sale in Maricopa County. There were 2,882 closed sales the past 30 days, giving the Phoenix market an absorption rate of 13.90 months, down slightly from last week.

Bank owned homes continue to move at a brisk pace – 676 sales over the past 30 days against 3,796 active listings for a 5.6-month absorption rate. (An absorption rate of 5 to 6 months is considered to be indicative of a balanced market.) Short sales slowed a bit – 4,154 active listings and 320 sales for a 13.0-month absorption rate.

Both El Mirage and Sun City West have dropped to a single-digit absorption rate while Ahwatukee has the quickest-moving market with a 6.60-month supply of homes.

As always, click on any of the below markers for details from that particular city or town. 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]

Jonathan Dalton

Jonathan Dalton is a 40-plus-year resident of the Valley and has been helping folks buy and sell homes since 2004. He can be reached at 602-502-9693 or info at allphoenixrealestate.com.

0 Comments

  • David Bushman 10 years ago

    I’ve always been kind of curious about the absorption rate that is consisdered a balanced market. You say 5-6 months, however, I’ve always heard 3-4 months. Not a big deal one might think, but 2-3 months more on the market means $3,000-4,000 out of my pocket book.

    So, what does it really mean to have a “balanced” market? For me, a balanced market is when the cost of the extra house payments equals the market price of the home that finally sells. Priced too aggressively to sell in 30 days, and you might lose out on some capital. Price it to sell in 6 months, and you might lose your shirt in mortgage payments. I realize this is probably not the real definition, so what’s your take?

  • Jonathan Dalton 10 years ago

    Hey, David … welcome back!

    The one place I’ve heard 3-4 months as a baseline is if you’re looking at days on market – that 90 days is considered an average sale time in a balanced market. Little different than the absorption rate figures, though.

    In truth, it’s all somewhat arbitrary. And if you’re in the situation where your home isn’t selling, there’s little consolation in the knowledge that at least the market was balanced.

    I’m not a big fan of pricing to sell in 6 months (read: pricing above current market), especially in current conditions, because you’re going to be chasing the market back down. There’s more danger now of losing money to additional payments than leaving money on the table.

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