Tuesday, 8 September 2015

Phoenix Real Estate in August: Sales up 9%, Inventory down 14%

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 ninth 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 August were up 9.2% year-over-year.

2) Cash Sales (frequently investors) were down to 22.6% of total sales.

3) Active inventory is now down 13.7% 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 are increasing a little faster in 2015 (something to watch if inventory continues to decline).   Prices are already up 2.5% through June (prices increased more in 6 months in 2015, than all of 2014).

August Residential Sales and Inventory, Greater Phoenix Area, ARMLS
  Sales YoY
Change
Sales
Cash
Sales
Percent
Cash
Active
Inventory
YoY
Change
Inventory
Aug-08 5,660 --- 1,004 17.7% 53,5691 ---
Aug-09 8,008 41.5% 2,849 35.6% 38,085 -28.9%
Aug-10 7,358 -8.1% 3,129 42.5% 44,307 16.3%
Aug-11 8,712 18.4% 3,953 45.4% 26,983 -39.1%
Aug-12 7,574 -13.1% 3,382 44.7% 20,934 -22.4%
Aug-13 7,055 -6.9% 2,409 34.1% 21,444 2.4%
Aug-14 6,431 -8.8% 1,621 25.2% 26,138 21.9%
Aug-15 7,023 9.2% 1,588 22.6% 22,554 -13.7%
1 August 2008 probably includes pending listings


from Calculated Risk http://ift.tt/1OvpIE9
via YQ Matrix

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