Perusing the numbers …
As of the moment, there are 22,136 single-family detached homes for sale in the Phoenix real estate market, or at least the Maricopa County portion. Of these, 3,321 are bank owned homes and another 6,168 are listed as short sales or pre-foreclosures (often one and the same.)
Put another way, about 43 percent of the active listings are distressed sales of some sort.
Over the past 30 days there have been 5,657 sales (more on this in a moment.) Of these, 2,292 were bank owned or REO homes and 1,216 were closed short sales.
Put it all together and we have 3.91 months of inventory overall, 1.44 months of bank owned inventory, 5.07 months of short sale inventory and 5.88 months of “traditional” – non-bank owned, non-short sale inventory.
Now for the fun part …
Last year at this time, there were 38,765 single family detached homes for sale in the Phoenix real estate market and 10.35 months of inventory. There were 8,669 bank owned properties on the market and just shy of five months of bank owned inventory.
Add another five thousand homes to the market to equalize the bank owned side of things compared to last year, and we’re still sitting at under five months of inventory overall – still half of where things were a year ago.
So what does all this mean? Here are my quick thoughts:
- Limited bank owned inventory has helped slow the market’s descent to some degree, if only in the places that had been the hardest hit before. Continuance of this trend largely depends on intelligent pricing by the banks – not trying to push too hard to the high side but not setting prices well below market either.
- Interest in the Phoenix market remains high, in spite of the economic challenges we’re facing here. Yes, unemployment is uncomfortably high for this area but still is lower than in many other locations.
- The combination of low prices, low interest rates, favorable exchange rates and the homebuyer’s tax credit is keeping the market moving even during what traditionally is the slowest time of year.
There were 3,745 total sales from mid-November to mid-December last year. The year before that, there were 2,361.
It’s not an imaginary recovery, though we’re still a long way before we’re anything close to fully recovered here in Phoenix.[tags]Phoenix real estate[/tags]