Here in the greater Phoenix area there is a lot of talk about the changing market. Our outlying areas have seen the greatest recovery. Well, let me rephrase that. Those outer areas, prices have dropped to such a level that people are jumping in to purchase.
This chart is the current inventory, the number of homes currently on the market actively listed, divided by the number of homes that are closing. Giving us an idea how long it would take at the current level to sell all of the homes available. Back in April of 2008 there was a 420 day supply of homes. That is a lot of homes, and not many people purchasing.
Move forward a little more than a year, and we have 209 day supply of homes. Currently we have people buying homes, and fewer on the market.
The first chart must be looked at comparing it to active listings. Together they tell a better picture. This is the chart of active listings. I included the 2002 and 2003 data because they show a ‘normal’ market.
You can see the inventory levels rose and reached their highest point in late 2007, and remained high all through 2008. The first part of 2009 we see the number of listings is reducing, currently at 41,197 active listings.
The last chart to compare is the pending listings. Is this a fluke or going to last. This chart is jagged, due to many closing at the end of the month. You can see the current pending listings is high. Due in part to lenders taking longer to approve buyers.
From this information we know there are lots of people purchasing homes. The inventory levels are dropping, and there are lots of homes pending and about to close. At least for the next few months, the Phoenix market is moving!