The Phoenix housing inventory began to fall gradually after it peaked in November of 2007, but it wasn’t until the spring of 2011 when the rate of decline really picked up speed.
Take a look at its rapid decline in 2011.
Phoenix Housing Inventory
There are a number of reasons why the number of houses for sale in an area decreases. For example, in cold winter states, the housing inventory will often take a dip between November and January because sellers often lose interest in having their homes for sale during those months when most people are wearing snow boots and heavy coats which may track mud and snow through their homes. In Arizona, though, our housing inventory has been decreasing for two very different reasons: the rising number of monthly home sales and the falling number of new listings each month.
Home Sales by Month
The first reason the Phoenix housing inventory started decreasing is the monthly home sales in the Phoenix area surged in 2009 and then continued to rise in 2010 and 2011.
New Listings by Month
The second reason our housing inventory has continued to fall is the number of new listings added to the market plummeted in 2011 and is still plummeting in 2012.
If you’ve heard anyone in the last few months say the Phoenix area is still suffering through a housing surplus, please share this article with him or her. A 2 – 2.5 month supply of homes is not anywhere near what we’d call a surplus. In fact, we’re now bordering on a shortage of homes for sale priced up to around $500,000 throughout most of the Valley!
**The charts above include data from the cities of Phoenix, Paradise Valley, Fountain Hills, Scottsdale, Tempe, Chandler, Mesa, and Gilbert. If you would like a chart, similar to one of the ones above, prepared for your own city or zip code within the Greater Phoenix Area, just post a comment below, send us a message on our Contact Us page, or give us a call the old fashioned way! We would love to hear from you.**
Source: The Cromford Report