Inventory of unsold homes in your area

[Rich Weese]

I was told yesterday by a Phoenix realtor that the "valley" is down to a TWO months inventory of unsold homes. Is this accurate? Normally a 6 month inventory is thought of as normal or healthy. If this is true, prices will go up and building new homes will be next sign of marketplace. Is amount of inventories going down in other major areas of country? Vegas? Florida? Rich

[Nick J.]

Originally posted by Rich Weese:

I was told yesterday by a Phoenix realtor that the "valley" is down to a TWO months inventory of unsold homes. Is this accurate?

very accurate. Its creating a feeding frenzy where buyers are offering cash, over asking price. A lot of the financed buyers are getting beat out and the one that do get an acceptance, are not getting the appraisals they need to close on the property. Appraisals apparently haven't caught up and a lot of retail buyers are being required to bring additional cash to closing or losing out and having the deal fall apart.

I've been heavily involved in purchasing and working with some clients on smaller multi-families, mostly tri's and quads over the last few months. Its starting to even ripple into that niche market as we're having to make full list price offers, and some even slightly over. While the numbers are still decent, it doesn't make you feel like you're a getting a great deal knowing you're paying asking price.

On one 4plex in your neck of the woods Rich in Casa Grande, we got countered with a highest and best multiple offer situation. That's unheard of lol...Especially for Casa Grande.