Phoenix Real Estate Inventory Update - May 6
First, let’s dispel a rumor … some have looked at yesterday’s date (Cinco de Mayo) and concluded the stomach malady from which I suffer has less to do with food and more to do with an unfortunate run-in with Senor Cuervo.
If only … oddly enough, I never felt as bad after consuming vast quantities of tequila in Cinco de Mayo margaritas as I did last night after a salad/quiche combo at the Paradise Bakery.
Did I say quiche? I meant steak. Forget I said quiche. And forget that I watched both Dancing With the Stars and The Bachelor in the interest of domestic harmony, would also could have led to the stomach problems.
But I digress …
As I mentioned earlier, inventory fell once again while sales rose, dropping the overall absorption rate for single family detached homes in Maricopa County to 10.87 months. Also as I mentioned earlier, bank owned homes here in the Phoenix real estate market now constitute a sellers’ market. Multiple offers are common and banks are less likely to give a home away, assuming they priced the house aggressively at the start.
One city - Queen Creek - has just about become a balanced market, admittedly due in large part to the foreclosure wave there. We’re looking at an absorption rate of six months on the nose in a community that has served as the poster child for the run up in prices a couple of years ago.
Foreclosures are defining the market, even as traditional sellers rail against the injustice of watching their home values drop because of the sins of their neighbors. I understand the basic concept but these same homeowners had little issue watching values inflate due to the sins of their neighbors.
In areas such as Queen Creek, the market has corrected and then some. But with a lower absorption rate and higher sales rate, the amount by which banks will need to price their properties below the market will become less and less.
As always, click on any of the below markers for details from cities and towns within the greater Phoenix real estate market. And also as always, all data is provided by the Arizona Regional MLS and is deemed reliable but not guaranteed.
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