Okay, the number of homes for sale in the Phoenix housing market may not have risen by much yet. But, considering the supply shortage the Phoenix area has been experiencing for the last six to nine months, I thought it was worth noting, for now, that at least the number of homes for sale has stopped falling!
Despite the fact that rising inventories are sometimes indicative of weakening demand, there are two reasons why our Phoenix housing market’s rising inventory isn’t as alarming as it was back in 2007 and 2008.
First, in the Greater Phoenix Area, the number of Active listings often plateaus during July and August and rises from September through November. So, this recent shift should not be a big surprise to anyone who has followed the Phoenix housing market for more than a few years. The more surprising part of this story for me was where the increase in inventory came from: largely from new home construction and the Town of Gilbert. Thank you, Gilbert!
Second, the supply shortage the Phoenix area is currently experiencing is putting a great deal of stress on most buyers looking for homes priced under $800,000. Therefore, a modest increase to the Phoenix housing inventory would probably be welcomed with open arms.
Do you agree? Would you like to see a 20% increase in the number of homes for sale in the Phoenix housing market, or are you hoping this recent uptick in inventory is a short-lived trend?
**If you would like a chart, similar to the one 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