AUGUST VALLEY HOME INVENTORY REVIEW

Many of you know I am in Palm Desert this week for a Tom Ferry real estate seminar. It has been a great week and it is AWSOME to learn from the top agents and coaches around the country what is working today to sell homes. Why reinvent the wheel when you can pay the best to share their knowledge and experience. I am very excited about what I will be bringing back to my team so we can service our clients better. Service? I mean market their home to be SOLD! Sold for the highest price in the desired time frame and with the least amount of inconvenience.

Back to the INVENTORY levels. Many of you know I am a numbers guy. So, I started tracking the inventory levels for single family homes in metro Phoenix back in 2005. I was frustrated with the way the Arizona Republic would mix their stats when reporting numbers.

With my tracking I run the numbers weekly, actually on Monday late in the afternoon. We have begun to see the inventory of homes for sale level off. As of August 1st there were 45,092 single family homes for sale valley wide. With 29,394 single family homes sold YTD, that calculates out to 10.74 months of inventory. WOW! The inventory level has only grown about 500 homes since July 1st, but is up from 33,523 on January 1st.

We experienced the same type of activity in 2006 with inventory levels. In 2006, the inventory of single family homes in metro Phoenix peaked at 39,950 according to my tracking. That was in September of 2006, however, we passed the 39,000 level in July. So, once we peaked we stayed at that level for some time. Then as we went into the off season and holidays, inventory levels dropped ending up down 15% from the peak at the first of the year. I expect to see the same type of activity this year.

The amount of homes being listed for sale each week has dropped dramatically. The 4 week moving average of net new listings is at 924. Unfortunately, sales have dropped too. The four week moving average of home sales is at 780 per week. So we are still adding about 144 homes to the inventory level each week.

This supply and demand issue is the basis for the transition in our market. With 15,000 homes being listed each month and less than 4,000 selling, most homes will not sell this year. Sellers that need to sell are being aggressive to draw the buyers. This has created a situation where values are being reset in neighborhoods.

If you are thinking about buying or selling in today's market, you need The Cameron Team's help. We assist buyers in making informed decisions and help sellers with proven marketing that works in today's world of real estate. Call us today for a FREE personal Total Market Review and Consultation.