Tuesday, 7 July 2015

Phoenix Real Estate in June: Sales Up 20.5%, Inventory DOWN 16% Year-over-year

This is a key distressed market to follow since Phoenix saw a large bubble / bust followed by strong investor buying.  These key markets hopefully show us changes in trends for sales and inventory.

For the seventh consecutive month, inventory was down year-over-year in Phoenix. This is a significant change from last year.

The Arizona Regional Multiple Listing Service (ARMLS) reports (table below):

1) Overall sales in June were up 20.5% year-over-year.

2) Cash Sales (frequently investors) were down to 23.0% of total sales.

3) Active inventory is now down 16.4% year-over-year.  

More inventory (a theme in 2014) - and less investor buying - suggested price increases would slow sharply in 2014.  And prices increases did slow in 2014, only increasing 2.4% according to Case-Shiller.

Now, with falling inventory, prices might increase a little faster in 2015 (something to watch if inventory continues to decline).   Prices are already up 1.8% through April (increasing faster than in 2014).

June Residential Sales and Inventory, Greater Phoenix Area, ARMLS
  Sales YoY
Change
Sales
Cash
Sales
Percent
Cash
Active
Inventory
YoY
Change
Inventory
June 2008 5,748 --- 1,093 19.0% 53,8262 ---
June 2009 9,325 62.2% 3,443 36.9% 38,358 ---2
June 2010 9,278 -0.5% 3,498 37.7% 41,869 9.2%
June 2011 11,134 20.0% 5,001 44.9% 29,203 -30.3%
June 2012 9,133 -18.0% 4,272 46.8% 19,857 -32.0%
June 2013 8,150 -10.8% 3,055 37.5% 19,541 -1.6%
June 2014 7,239 -11.2% 1,854 25.6% 27,954 43.1%
June 2015 8,273 20.5% 2,005 23.0% 23,377 -16.4%
1 June 2008 does not include manufactured homes, ~100 more
2 June 2008 Inventory includes pending


from Calculated Risk http://ift.tt/1G5TfxQ
via YQ Matrix

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