by Bill McBride on 4/07/2016 11:21:00 AM
Thursday, April 07, 2016
This is a key distressed market to follow since Phoenix saw a large bubble / bust followed by strong investor buying.
Inventory was up year-over-year in March, following fifteen consecutive months of year-over-year declines in Phoenix. This could be a significant change.
The Arizona Regional Multiple Listing Service (ARMLS) reports (table below):
1) Overall sales in March were up 8.5% year-over-year.
2) Cash Sales (frequently investors) were down to 24.6% of total sales.
3) Active inventory is now up 3.6% 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!
|March Residential Sales and Inventory, Greater Phoenix Area, ARMLS|
|1 March 2008 probably included pending listings|