Tuesday, 8 March 2016

Phoenix Real Estate in February: Sales down 3%, Inventory down slightly

This is a key distressed market to follow since Phoenix saw a large bubble / bust followed by strong investor buying.

For the fifteenth consecutive month, inventory was down year-over-year in Phoenix.

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

1) Overall sales in February were down 2.6% year-over-year.

2) Cash Sales (frequently investors) were down to 29.0% of total sales.

3) Active inventory is now down 0.7% 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.

In 2015, with falling inventory, prices increased a little faster -  Prices were up 6.3% in 2015 according to Case-Shiller.  Inventory is something to watch in 2016!  

February Residential Sales and Inventory, Greater Phoenix Area, ARMLS
  Sales YoY
Change
Sales
Cash
Sales
Percent
Cash
Active
Inventory
YoY
Change
Inventory
Feb-2008 3,445 --- 650 18.9% 57,3051 ---
Feb-2009 5,477 59.0% 2,188 39.9% 52,013 -9.2%
Feb-2010 6,595 20.4% 2,997 45.4% 42,388 -18.5%
Feb-2011 7,171 8.7% 3,776 52.7% 40,666 -4.1%
Feb-2012 7,249 1.1% 3,616 49.9% 23,736 -41.6%
Feb-2013 6,618 -8.7% 3,053 46.1% 21,718 -8.5%
Feb-2014 5,476 -17.3% 1,939 35.4% 29,899 37.7%
Feb-2015 5,970 9.0% 1,784 29.9% 27,382 -8.4%
Feb-2016 5,816 -2.6% 1,688 29.0% 27,202 -0.7%
1 February 2008 probably included pending listings


from Calculated Risk http://ift.tt/1X9WO0y
via YQ Matrix

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