A slow recovery seems to be unfolding in our Phoenix real estate market.   The pace of activity varies by area and community across our valley, but  the dynamic in our market between seller and buyer  has shifted.  In many price ranges, particularly mid-range and lower,  attractive homes that are appropriately priced are selling fairly quickly.  In some instances, multiple offers are received.  Some homes are selling for higher than listed price. 

Basic to a seller’s or buyer’s experience is the number of  listings competing with your home or available as choices to purchase.   And,  inventory, or the number of available listings,  is dropping: As of this morning there are 22,901 active listings in our Phoenix Metro area MLS.  This is down from approximately 26,000 one month ago, and continuing to decrease. 

The reduction in available listings is driven by several key factors, and accompanied by additional developments.  According to ARMLS (Arizona Regional Multiple Listing Service)  Stat, 6/6/11:  

• Sales are up over May 2010 by 8.1%
• New Inventory declined in May.  The 10,459 new listings to market during the month was down 3.8% from April’s number; and could be  the start of a downward trend.
•  Total inventory (Actives and AWC status, or under contract/not yet pending status) is decreasing.
• Median list price increased 1% in May to $122,500, essentially flat since November.  The median sales price of $108,300 in May was the lowest of the decde, while the average sales price of $158,780 was the 4th lowest of the decade.
• The percentage of distress sales (bank owned and short sales) is on a declining trend, about 65% of total sales, down from 70% in January.
• Foreclosures pending (foreclosed properties under contract for sale) is also on a downward trend.  As Stat  discusses, the glut of foreclosed properties to market began skyrocking in 2008, exerting downward pressure on prices, wreaking havoc on values.  For our market to stabilize and begin providing modest yearly increases in values, the number of foreclosed properties to market needs to drop to pre-2008 numbers.