For those concerned regular sellers are being left behind in the Phoenix real estate market, consider this a public service announcement.
As of this morning, there’s less than 10 months of inventory of non-bank owned single family detached homes in Maricopa County – a more than 50 percent decline from last fall.
The lesson? If you’re a seller and your home is competitively priced and in good condition, it will sell. And if you’re a buyer, it might be worth not limiting your search to bank owned homes just in case an equivolently priced non-REO home also exists.
We’re down to 25,837 single family detached homes for sale in the Phoenix real estate market, a decrease of more than 1,400 homes from a week ago. Bank owned inventory has fallen to 4,636 homes, a drop of more than 500.
Closed sales over the past 30 days were 6,405 overall and 4,283 in the bank owned arena, which gives the Phoenix market an overall absorption rate of 4.03 months of inventory and a bank owned absorption rate of 1.08 months.
If nothing else came to the market, all the bank owned homes would be gone in less than 45 days at current sales pace. Except we know more homes are coming to the market. And as I wrote yesterday, the consequences may not be as dire as some predict.
Without going as deep into it as yesterday, the reality remains that the assumption banks will slash prices as deeply as needed to sell a home doesn’t hold in a hyperactive market. For those with long memories – say, back to last spring – banks weren’t as aggressive in pricing then and reductions often were needed before a buyer would bite.
For the speed with which the market’s moving, it’s far from impossible to buy a home – three of my buyers have done so in just the last two weeks. But it does take a little more focus, a little more effort and a lot more decisiveness.
As always, the details for the various cities and towns in the Phoenix real estate market are on the below chart. And also as always, all data is provided by the Arizona Regional MLS and is deemed reliable but not guaranteed.[table=47] [tags]Phoenix real estate, absorption rate[/tags]