“Strange days indeed. Most peculiar, mama.” – John Lennon
And so it goes for another week in the Phoenix real estate market. Bank owned inventory has fallen to the point we can count the absorption rate in days, overall inventory tumbled by 800 homes and seven cities have less than three months of inventory remaining on the market. Bank owned inventory continues to trickle through the dam and the line of thirsty buyers trying in vain on multiple properties while waiting for the floodgates to open continues to grow.
Emotion seems to be underestimated as a dominant force in the real estate equation but it’s a driving factor at the moment. Many of the buyers who sat on the sidelines for months have seen the statistics and know the market’s picking up. So they come out of the woodwork just as the moratorium takes hold and inventory starts shrinking precipitously for the first time in months. And soon you have a miniature version of the 2005 hysteria, with buyers writing offers on multiple homes above list price in hopes of getting one.
Banks are noticing, at least on the properties that still are coming to market, and aren’t as inclined to slam the price through the floor in an effort to attract a buyer because now, finally, there are enough buyers. And in the bank owned arena, there are more buyers than there are properties available.
On to the fun with figures …
Inventory of single family detached homes in the Phoenix real estate market encompassing Maricopa County fell by 800 homes to 25,016. Closed sales over the past 30 days rose by just under 300 to 6,702 for an absorption rate of 3.73 months. We’re a long way from the double-digit days, kids.
In the bank owned sector, there were 4,479 closed sales the past 30 days and there are 4,305 active properties as of this morning. The resulting absorption rate is 0.96 months – about 29 days.
(Editor’s note: as I mentioned yesterday, even with the foreclosure moratoriums in effect for owner-occupied property there are bank-owned homes coming to the market – about 670 so far this month – just far fewer than before the moratoriums went into place.)
As for non-bank owned homes, those inventory numbers also continue to improve. There are 20,713 non-bank owned homes on the market and there were 2,223 closed sales the past 30 days for an absorption rate of 9.32 months.
As always, all 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.[table=48] [tags]Phoenix real estate[/tags]