This is a key distressed market to follow since Phoenix saw a large bubble / bust followed by strong investor buying. These key markets hopefully show us changes in trends for sales and inventory.
The Arizona Regional Multiple Listing Service (ARMLS) reports (table below):
1) Overall sales in January were up 9.0% year-over-year. Another change.
2) Cash Sales (frequently investors) were down about 8% to 29.9% of total sales. Non-cash sales were up 18.3% year-over-year.
3) Active inventory is now down 8.4% year-over-year. Note: House prices bottomed in Phoenix in 2011 at about the current level of inventory.
More inventory (a theme in 2014) - and less investor buying - suggested price increases would slow sharply in 2014. And prices increases did slow.
Now, with falling inventory, prices might increase a little faster in 2015 (something to watch if inventory continues to decline).
| February Residential Sales and Inventory, Greater Phoenix Area, ARMLS | ||||||
|---|---|---|---|---|---|---|
| Sales | YoY Change Sales | Cash Sales | Percent Cash | Active Inventory | YoY Change Inventory | |
| Feb-2008 | 3,445 | --- | 650 | 18.9% | 57,3051 | --- |
| Feb-2009 | 5,477 | 59.0% | 2,188 | 39.9% | 52,013 | -9.2% |
| Feb-2010 | 6,595 | 20.4% | 2,997 | 45.4% | 42,388 | -18.5% |
| Feb-2011 | 7,171 | 8.7% | 3,776 | 52.7% | 40,666 | -4.1% |
| Feb-2012 | 7,249 | 1.1% | 3,616 | 49.9% | 23,736 | -41.6% |
| Feb-2013 | 6,618 | -8.7% | 3,053 | 46.1% | 21,718 | -8.5% |
| Feb-2014 | 5,476 | -17.3% | 1,939 | 35.4% | 29,899 | 37.7% |
| Feb-2015 | 5,970 | 9.0% | 1,784 | 29.9% | 27,382 | -8.4% |
| 1 February 2008 probably included pending listings | ||||||
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