Agent2Agent in Scottsdale>Question Details

A, Real Estate Pro in Scottsdale, AZ

Wow AZ inventory shrinking ?

Asked by A, Scottsdale, AZ Tue Jun 7, 2011

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Inventory is now less than a 3 monthsupply and that generally indicates a seller's market. Unfortunately with all of the negative media coverage, buyers are still thinking it's a more favorable situation for them.
0 votes Thank Flag Link Tue Jun 7, 2011
I agree, the media makes it very difficult to stress the fact that the market is improving because buyers already have their minds made up.
1 vote Thank Flag Link Tue Jun 7, 2011
YES! All indications scream a very favorable message to sellers. If this trend continues we will soon be at 50% of the high mark in properties for sale over the last decade. The high mark was 58,334 in October of 2007. Today it's 30,239. Now add to that monthly sales at more than 4 times the low mark of 2518 in January of 2008.

The trend is all green 'go lights' for sellers, with the exception of Pending Listings being off from last month--reflecting the seasonal trend, as sales typically slow in the summer months. But I would suggest this is not a summer for would-be sellers to go on sabbatical for several timely reasons.

Our market is bucking the national trend of a double dip in housing (as per Case-Schiller). Can it last?
Continued 'artificially low' interest rates are keeping houses at a 30-year high in affordability. How long can they stay this low with inflationary and money-supply issues?

Supply and demand numbers have clearly created the best opportunity to sell that we've seen in years.

0 votes Thank Flag Link Sat Jul 2, 2011
Yes, June currently has over 10,500 closed sales. An all time record in sales for the month of June. However, there is a chance that this number will decrease when the short sales that were automatically set to close in our MLS database are corrected and put back on the market as either AWC or Pending.

We are definitely in a good position with the decreasing volume. At this rate we are approaching an overall 2 month supply of single family homes in the entire greater Phoenix metro area.

Let keep this going!
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0 votes Thank Flag Link Sat Jul 2, 2011
Yes, an average of almost 8,500 homes are sold in the valley every month. Inventories are dropping and are around 3-4 month supply in Scottsdale. There are so many bargains they get snapped up really quickly.
0 votes Thank Flag Link Wed Jun 29, 2011
Yes.... it is true especially when sellers see where the dollar is going and see real estate as not such a bad bet.
If we hang around a bit longer homes will be worth their value in gold.
More bite to housing less gold teeth.
0 votes Thank Flag Link Fri Jun 10, 2011
Um ... yes. And this should have been in Agent 2 Agent, not home buying.
0 votes Thank Flag Link Wed Jun 8, 2011
Inventory is definitely down. The numbers of buyers is up and investors are coming in from all over, including foreign investors. I see multiple offers on the majority of homes we have been writing offers on. Even homes as much as $400,000.


Ron & Brenda Cunningham
West USA Realty

Recognized in the Phoenix Business Journal as "One of the Top 50 Realtors in the Valley"
0 votes Thank Flag Link Tue Jun 7, 2011
Thank you everyone for your input !
0 votes Thank Flag Link Tue Jun 7, 2011

Its tough to close on any home even short sales. I am having to counter on short sales inventory under 200k is gone fast if they are great homes.

Also lenders are holding on to inventory which is creating more of a frenzy!

Our owner and broker provide awesome market statistics that are helping to motivate my buyers to offer highest and best. Some are on board however not all of them.

Lucinda Tkach
0 votes Thank Flag Link Tue Jun 7, 2011
Inventory is down and prices are down in the Prescott Area. You would think Supply and demand would kick into overdrive soon.…

I think the news, lack of job growth, and poor credit is still keeping the buyers at bay.

We are still off to a killer year.
0 votes Thank Flag Link Tue Jun 7, 2011
I am seeing more and more multiple offer situations. The investors are coming back. Foreclosure notices and bankruptcy filing in the Phoenix metro are also declining.

Jeff Masich
Arizona Homes and Land
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0 votes Thank Flag Link Tue Jun 7, 2011
Good news. We are showing a decrease in inventory in Prescott, but this happens every spring and early summer. I hope that the trend continues.
0 votes Thank Flag Link Tue Jun 7, 2011
Good news! I am seeing houses selling faster since the beginning of the year. I work a lot in the North Valley (Scottsdale, Paradise Valley, Peoria, Surprise, North Phoenix, and North Glendale). In all those areas houses are selling faster and sometimes even for more than the asking price.

Jose Dias, REALTOR
(623) 418-5700
Realty One Scottsdale
0 votes Thank Flag Link Tue Jun 7, 2011
There are pockets all over the valley where inventories are down, demand is up and we're seeing actual appreciation! I agree with Carmen and others who say the media makes it difficult for us sometimes.

Stay positive!
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0 votes Thank Flag Link Tue Jun 7, 2011
I'm a Realtor in the City of Maricopa. Our inventory is going down every day and it's going on since the end of last year. For the longest time we had between 1000 to 1100 listings on the market while selling around 200 per month. As of today we have 572 listings on the market. In addition to inventory going down our sales have increased. In May we sold 269 listings. Our inventory is down to 2.1 months supply at the current rate of sale. That's what you call a seller's market especially since this is going on for a few months now. We haven't seen the median price go up yet but realtors noticed that multiple offer situations are the new normal.
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0 votes Thank Flag Link Tue Jun 7, 2011
White Mountain's Inventory is way down too. Very few REO's left and prices are stabilizing. Is it the calm before the storm? I'm not so sure, I think we may be seeing that kind of activity slowing a bit as people get back to work, banks work with people better, etc. Why did it take the Banks so long to figure out they wouldn't have to be in the banking business if they would just work with people.
0 votes Thank Flag Link Tue Jun 7, 2011
We have had consistent drop in inventory since beginning of year. We have not seen the typical influx of new sellers listing after the holiday. More buyers bought up the inventory as well with a volume high in March close to 2005. We actively seek new sellers every day. Our buyers are up against multiples when they find a home they like as well.
Laura Myers
AZ Real Estate Consultants
0 votes Thank Flag Link Tue Jun 7, 2011
Indeed it is! I have been watching it shrink fast, especially the past 3-4 months. It seems as though no one is really paying any attention to this fact. Simple economics here, when supply shrinks (and demand is still there), prices tend to go up...we havent seen the prices going up...yet. It will be interesting to see what happens. Certainly, we wont see what happened in 2005, but we may be heading toward a more favorable market and possibly even appreciation in values.
0 votes Thank Flag Link Tue Jun 7, 2011
I've noticed a difference in the market. There is a large number of homes selling each month while fewer and fewer are being listed.
0 votes Thank Flag Link Tue Jun 7, 2011
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