By Bill McBride Calculated RISK Finance & Economics
This is a key housing market to follow since Phoenix saw a large bubble and bust, followed by strong investor buying.
The Arizona Regional Multiple Listing Service (ARMLS) reports (table below):
1) Overall sales in January were up 15.9% year-over-year.
2) Cash Sales (frequently investors) were down to 27.1% of total sales.
3) Active inventory is now down 7.7% year-over-year.
More inventory (a theme in most of 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.
In 2015, with falling inventory, prices increased a little faster. Prices were up 6.3% in 2015 according to Case-Shiller.
This is the third consecutive month with a YoY decrease in inventory following eight months with YoY increases. This might be a change in trend – something to watch.
