by Bill McBride on 11/09/2016 10:11:00 AM
Wednesday, November 09, 2016
This is a key housing market to follow since Phoenix saw a large bubble / bust followed by strong investor buying.
Inventory was up 1.0% year-over-year in October. This was the eighth consecutive month with a YoY increase in inventory, following fifteen consecutive months of YoY declines in Phoenix.
The Arizona Regional Multiple Listing Service (ARMLS) reports (table below):
1) Overall sales in October were up 12.6% year-over-year.
2) Cash Sales (frequently investors) were down to 21.0% of total sales.
3) Active inventory is now up 1.0% 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.
In 2015, with falling inventory, prices increased a little faster - Prices were up 6.3% in 2015 according to Case-Shiller.
Now inventory is increasing a little again, and - if this trend continues in Phoenix - price increases will probably slow in Phoenix. According to Case-Shiller, prices in Phoenix are up 2.7% through August (about a 4.0% annual rate) - slower than in 2015.
|October Residential Sales and Inventory, Greater Phoenix Area, ARMLS|
|1 October 2008 probably includes pending listings|