Thursday, May 07, 2015

Phoenix Real Estate in April: Sales Up 9.3%, Inventory DOWN 13% Year-over-year

by Bill McBride on 5/07/2015 05:31:00 PM

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

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

1) Overall sales in April were up 9.3% year-over-year.

2) Cash Sales (frequently investors) were down to 25.3% of total sales.

3) Active inventory is now down 13.2% 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.

Now, with falling inventory, prices might increase a little faster in 2015 (something to watch if inventory continues to decline).

April Residential Sales and Inventory, Greater Phoenix Area, ARMLS
SalesYoY
Change
Sales
CashPercent CashInventoryYoY Change
Apr-084,8751---98620.2%55,7261---
Apr-098,56475.7%3,46440.4%44,165-20.7%
Apr-109,2618.1%3,64139.3%41,756-5.5%
Apr-119,3280.7%4,48948.1%34,515-17.3%
Apr-128,438-9.5%4,01347.6%21,125-38.8%
Apr-138,7443.6%3,67042.0%20,083-4.9%
Apr-147,656-12.4%2,46932.2%29,88948.8%
Apr-158,3689.3%2,12025.3%25,950-13.2%
1 April 2008 does not include manufactured homes, ~100 more