Phoenix Real Estate Market Update 5-1-2020
Inventory Levels Went DOWN again this week! That’s the first week after week decline since the pandemic started. Let’s get into it and take a closer look at this weeks Phoenix Real Estate Market.
The overall inventory absorption rate went DOWN to 1.8 months or 1.7% from last weeks 1.83.
Active Listing Inventory is DOWN this week 2% from 14,313 to 14,144 homes for sale.
Sold Listings were UP a half % this week from 23,403 to 23,477.
Breaking the numbers down…
This is a momentous milestone as it’s the first time it has gone down in consecutive weeks since the pandemic started. And remember a lower inventory abosorption rate means it’s a stronger market for sellers which means prices should remain steady.
On the mortgage front mortgage insurance is getting more expensive and loans that would allow you to put less than 20% down are getting harder to come by. Rates are still historically low below 4% so the only effect we could see is the inventory levels might rise a bit due to less buyers in the market. Our inventory levels are still historically low so it shouldn’t impact us much in the short run.
Here is what the pricing bands look like this week:
0-$300K went DOWN to 1.26 Months of Inventory from 1.3 last week.
$300K-$500K went DOWN to 1.64 Months of Inventory from 1.65 last week.
$500K-$750K went DOWN to 2.89 Months of Inventory from 2.95 last week.
$750K-$1M went DOWN slightly to 4 Months of Inventory from 4.01 last week.
$1M-$2M went UP slightly to 5.62 Months of Inventory from 5.58 last week.
Over $2M edged UP again this week to 12 Months of Inventory from 11.69 last week.
The big takeaway this week:
Inventory levels are not exploding like unemployment is. This is due to the severe lack of housing available in Phoenix. I know I sound like a broken record but with only 1.8 months of overall inventory we would have to see inventory levels spike quickly and drastically to 40,000 homes for sale just to be in what use to be normal in the past with 6 months of inventory.
That’s it for this week. Thank you for watching and stay safe! If you have any questions please feel free to contact us.