Phoenix Real Estate in January: Sales up 9%, Inventory down 6%
This is a key distressed market to follow since Phoenix saw a large bubble / bust followed by strong investor buying.
For the fourteenth consecutive month, inventory was down year-over-year in Phoenix.
The Arizona Regional Multiple Listing Service (ARMLS) reports (table below):
1) Overall sales in January were up 8.7% year-over-year.
2) Cash Sales (frequently investors) were down to 27.4% of total sales.
3) Active inventory is now down 5.5% 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.
With falling inventory, prices increased a little faster in 2015 (something to watch in 2016 if inventory continues to decline). Prices are already up 5.3% through November according the Case-Shiller (more than double the increase in 2014).
Reference Bill McBride
Nmls # 1045837
BK # 10123-Suburban Mortgage Co.
Equal Housing Opportunity Lender