by Bill McBride on 3/10/2015 04:45:00 PM
Tuesday, March 10, 2015
For the third consecutive month, inventory was down year-over-year in Phoenix. This is a significant change.
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.
The Arizona Regional Multiple Listing Service (ARMLS) reports (table below):
1) Overall sales in January were up 9.0% year-over-year. Another change.
2) Cash Sales (frequently investors) were down about 8% to 29.9% of total sales. Non-cash sales were up 18.3% year-over-year.
3) Active inventory is now down 8.4% year-over-year. Note: House prices bottomed in Phoenix in 2011 at about the current level of inventory.
More inventory (a theme in 2014) - and less investor buying - suggested price increases would slow sharply in 2014. And prices increases did slow.
Now, with falling inventory, prices might increase a little faster in 2015 (something to watch if inventory continues to decline).
|February Residential Sales and Inventory, Greater Phoenix Area, ARMLS|
|1 February 2008 probably included pending listings|