by Bill McBride on 3/07/2017 06:59:00 PM
Tuesday, March 07, 2017
This is a key housing market to follow since Phoenix saw a large bubble and bust, followed by strong investor buying.
The Arizona Regional Multiple Listing Service (ARMLS) reports (table below):
1) Overall sales in February were up 12.6% year-over-year.
2) Cash Sales (frequently investors) were down to 25.9% of total sales.
3) Active inventory is now down 10.8% year-over-year.
More inventory (a theme in most of 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.
With flat inventory in 2016, prices were up 4.8%.
This is the fourth consecutive month with a YoY decrease in inventory following eight months with YoY increases. This is a key change in trend - something to watch.
|February Residential Sales and Inventory, Greater Phoenix Area, ARMLS|
|1 February 2008 probably included pending listings|