Posted on July 24th, 2007 by Jonathan Dalton

This week’s Phoenix Real Estate Market Inventory update …

The absorption rates for 17 of the 28 cities and towns I track dropped, yet overall the absorption rate for single-family homes in Maricopa County rose to just shy of 11 months. Why?

One of the challenges with tracking absorption rates for individual municipalities is relatively small sample sizes in several areas. It’s not uncommon to see the supply of homes jump from 14 months to nearly three years simply because one sale fell off when there are only 100 or so homes in the given market.

Similarly, the averages are influenced greatly by inventory variances in the city of Phoenix itself. For instance, this past week there was a net increase of just over 200 homes while sales remained essentially flat. Phoenix was the cause of the bulk of the increase, with a net rise of 110 homes there alone.

On a percentage basis, it’s not a significant jump … an increase in inventory of just over one percent in the city proper. But it’s a significant enough portion of the overall figures that an increase in Phoenix’s absorption rate easily can outpace changes in most of Maricopa County’s remaining cities and towns.

Data provided by ARMLS. Data deemed reliable but not guaranteed

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Categories: Phoenix Inventory, Phoenix Market, General Real Estate