Saturday, June 06, 2015

Phoenix Real Estate in May: Sales Up 11.4%, Inventory DOWN 15% Year-over-year

by Bill McBride on 6/06/2015 06:39:00 PM

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 sixth 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 May were up 11.4% year-over-year.

2) Cash Sales (frequently investors) were down to 24.0% of total sales.

3) Active inventory is now down 15.4% 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.

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

May Residential Sales and Inventory, Greater Phoenix Area, ARMLS
SalesYoY
Change
Sales
Cash
Sales
Percent
Cash
InventoryYoY
Change
Inventory
May-085,6371---1,06218.8%54,1611---
May-099,28464.7%3,59238.7%39,902-26.3%
May-109,067-2.3%3,34136.8%41,3263.6%
May-119,8118.2%4,52346.1%31,661-23.4%
May-128,44513.5%3,90746.3%20,162-36.3%
May-139,44011.8%3,66938.9%19,734-2.1%
May-147,442-21.2%2,19329.5%29,09147.4%
May-158,29311.4%1,98824.0%24,616-15.4%
1 May 2008 does not include manufactured homes, ~100 more