Housing Inventory Drop is “Old News” for Phoenix
Over the past year or so, Phoenix housing saw market improvements reminiscent of 2003 – when the market started rumbling it’s previous parabolic ascent. Rates are extraordinarily favorable and buyers again are chasing homes as they come on the market. If they need certainty and must have a house by a specific date, waiting for bank-owned or short sale approval is not an option; so their “real” available inventory is even more limited. Current residential statistics show only about a 3 month supply of homes across The Valley.
The Monthly Housing Summary released November 14, 2012 by the National Association of Realtors, details year over year changes by geographic area and headlines boast “Report: Housing Inventory declines 17% year-over-year in October“.  The data presented, shows Phoenix has seen more than a 20% drop in inventory for this same period.
These headline numbers voice the frustration of cautious buyers in the Phoenix area. The good news is that despite the reported drop in year-over-year inventory, the number of listings have grown since May, 2012 and the latest month-over-month inventory grew by almost six percent.
When there is only a three month supply of homes on the market, an increase of available inventory is healthy for a sustainable market. More good news is that short term median list prices overshot in April 2012 and have gradually been adjusting to levels that might be appealing to buyers.
Next week we see how the the scheduled NAR report on existing home sales and inventory stacks up with the local market.
