By Bill McBride | Calculated Risk
This is a key distressed market to follow since Phoenix saw a large bubble / bust followed by strong investor buying.
For the thirteen consecutive month, inventory was down year-over-year in Phoenix. This is a significant change from the prior year.
The Arizona Regional Multiple Listing Service (ARMLS) reports (table below):
1) Overall sales in December were up 4.3% year-over-year.
2) Cash Sales (frequently investors) were down to 23.9% of total sales.
3) Active inventory is now down 8.0% 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 if inventory continues to decline). Prices are already up 4.6% through October according the Case-Shiller (about double the pace for 2014).