by Bill McBride on 12/06/2016 04:44:00 PM
Tuesday, December 06, 2016
This is a key housing market to follow since Phoenix saw a large bubble / bust followed by strong investor buying.
Inventory was down 2% year-over-year in October. This followed eight consecutive months with a YoY increase in inventory.
The Arizona Regional Multiple Listing Service (ARMLS) reports (table below):
1) Overall sales in November were up 30.2% year-over-year.
2) Cash Sales (frequently investors) were down to 23.4% of total sales.
3) Active inventory is now down 1.8% 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.
This slight decrease in inventory followed eight monthly YoY increases. This might be a change in trend - something to watch.
|November Residential Sales and Inventory, Greater Phoenix Area, ARMLS|
|1 November 2008 probably includes pending listings|