Phoenix Real Estate in May: Sales Up 11.4%, Inventory DOWN 15% Year-over-year

June 6, 2015 10:45 pm

This is a key distressed market to follow since Phoenix saw a large bubble / bust followed by strong investor buying.  These key markets hopefully show changes in trends for sales and inventory.

For the sixth 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 May were up 11.4% year-over-year.

2) Cash Sales (frequently investors) were down to 24.0% of total sales.

3) Active inventory is now down 15.4% 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.

Now, with falling inventory, prices might increase a little faster in 2015 (something to watch if inventory continues to decline).

May Residential Sales and Inventory, Greater Phoenix Area, ARMLS
Sales YoY
Change
Sales
Cash
Sales
Percent
Cash
Inventory YoY
Change
Inventory
May-08 5,6371 1,062 18.8% 54,1611
May-09 9,284 64.7% 3,592 38.7% 39,902 -26.3%
May-10 9,067 -2.3% 3,341 36.8% 41,326 3.6%
May-11 9,811 8.2% 4,523 46.1% 31,661 -23.4%
May-12 8,445 13.5% 3,907 46.3% 20,162 -36.3%
May-13 9,440 11.8% 3,669 38.9% 19,734 -2.1%
May-14 7,442 -21.2% 2,193 29.5% 29,091 47.4%
May-15 8,293 11.4% 1,988 24.0% 24,616 -15.4%
1 May 2008 does not include manufactured homes, ~100 more

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