Monday, April 17, 2017

Phoenix Real Estate in March: Sales up 9%, Inventory down 10% YoY

by Bill McBride on 4/17/2017 01:02:00 PM

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 March were up 8.8% year-over-year.

2) Cash Sales (frequently investors) were down to 23.9% of total sales.

3) Active inventory is now down 9.8% 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 fifth consecutive month with a YoY decrease in inventory following eight months with YoY increases. 

March Residential Sales and Inventory, Greater Phoenix Area, ARMLS
  SalesYoY
Change
Sales
Cash
Sales
Percent
Cash
Active
Inventory
YoY
Change
Inventory
Mar-084,303---82219.1%57,0811---
Mar-097,63677.5%2,99439.2%49,743-12.9%
Mar-108,96917.5%3,74541.8%42,755-14.0%
Mar-119,92710.7%4,94649.8%37,632-12.0%
Mar-128,868-10.7%4,22247.6%21,863-41.9%
Mar-138,146-8.1%3,38441.5%20,729-5.2%
Mar-146,708-17.7%2,22233.1%30,16745.5%
Mar-157,88417.5%2,17227.5%26,623-11.7%
Mar-168,5558.5%2,10724.6%27,5803.6%
Mar-179,3048.8%2,22623.9%24,871-9.8%
1 March 2008 probably included pending listings