by Bill McBride on 11/16/2015 01:16:00 PM
Monday, November 16, 2015
This is a key distressed market to follow since Phoenix saw a large bubble / bust followed by strong investor buying.
For the eleventh 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 October were up 2.0% year-over-year.
2) Cash Sales (frequently investors) were down to 24.9% of total sales.
3) Active inventory is now down 11.0% 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 3.5% through August (about double the pace for 2014).
|October Residential Sales and Inventory, Greater Phoenix Area, ARMLS|
|1 October 2008 probably includes pending listings|