Updated over 2 years ago on . Most recent reply
Phoenix Real Estate Inventory Doubles - Investors Nowhere To Be Found
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Valley metro cities top list of markets with largest home inventory increaseshttps://www.abc15.com/news/sta...
"A primary reason for rising inventories is a sharp decline in investor home purchases."
"There are 16,067 active home listings in the Phoenix metro, nearly double from December of 2021. It’s a common theme in most real estate markets, and elevated listings are pushing up inventory. In the Valley of the Sun, once one of the hottest real estate markets in the country, the trends are no different."
"The second largest city in the Valley, Mesa, tops the list with home inventories rising almost 90%. Phoenix makes the top five with a 66% increase. Tucson also made the list ranking 30 out of 50."
"The Valley’s midsize cities are also seeing rising inventories. Gilbert ranked seventh with inventory doubling since the same time last year. Chandler and Peoria are not far behind. Glendale and Scottsdale also made the list."
Most Popular Reply
When looking at how Phoenix inventory has doubled since December 2021, it's important to note that those 2021 numbers were a historic low. While we have doubled inventory to 16,000, we are still below the 20,000 - 25,000 active listing count that is considered a balanced market.
This chart from The Cromford Report (which creates its proprietary Cromford Market Index from Metro Phoenix MLS data) breaks down which cities are in buyer/balanced/seller markets. See their commentary below to learn more.
"Among the 17 largest cities we see 4 currently in a buyer's market below 90, 3 balanced between 90 and 110, and 10 in a seller's market over 110...
Overall, the market is more favorable to sellers than we expected in December and downward pressure on pricing has been largely eliminated, except in a few market segments.
The more favorable situation has started to bring more sellers into the market and new listings have been more plentiful over the last week. Overall supply remains well below normal and so does demand. Volume is low but it is increasing and market health is improving, not deteriorating as it was for much of 2022."
From Melanie:
We are seeing a tale of two markets, depending on the individual property. Buyers are negotiating price discounts and beneficial terms from sellers who have been on the market 90+ days. And some sellers are starting to receive multiple offers, which was rare even 30 days ago.
It's definitely a property-by-property situation in the Metro Phoenix market right now.