By Bill McBride | Calculated RISK Finance & Economics
This is a key distressed market to follow since Phoenix saw a large bubble / bust followed by strong investor buying.
For the twelfth consecutive month, inventory was down year-over-year in Phoenix. This is a significant change from last year.
The Arizona Regional Multiple Listing Service (ARMLS) reports (table below):
1) Overall sales in November were up 6.5% year-ver-year.
2) Cash Sales (frequently investors) were up slightly at 29.1% of total sales.
3) Active inventory is now down 8.8% 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.
Now, with falling inventory, prices are increasing a little faster in 2015 (something to watch if inventory continues to decline). Prices are already up 4.0% through September (about double the pace for 2014).
