2007 END OF YEAR SUPPLY STATS, 42,912 SINGLE FAMILY HOMES FOR SALE AS OF 1/1/08

Sorry, this is a little late being posted, but better late than never!

Every year through the holidays inventory levels drop, that was no different in 2007. It started a little later and was not as furious as in the past. I believe more sellers are understanding our market is drifting lower and the sooner you sale the more money you get.

Over inventory levels here in Maricopa county peaked, well they peaked first in June at 45,000 single family homes. These numbers are all collected from the Arizona Regional Multiple Listing Service, ARMLS. However, as our market was on the road to recover it received a punch in the nose. "Sub-prime II" hit in August and demand dropped by 25% from its already low level. That hurt. Demand had caught up to supply and it took 12 weeks to add 1,000 homes to inventory, where it had taken 2-3 weeks earlier in the year. Anyway, "sub-prime II" made inventory levels grow again. This time they peaked at about 47,800 homes in October. From there we dropped to 42,912 SFH, single family homes, by the first of the year. This was a good sign. Levels dropped by 10%.

Last year, 2006, our inventory levels dropped by 16% from their peak to the first of the year. They peaked in September at 39,950 single family homes according to ARMLS. Then by the first of the year the level dropped to 33,593. In 2007, the inventory leveled off earlier in the year. The Phoenix resale market was moving into recover and then boom. In August, it was like a bomb going off. However, the dust has settled and its time to get back on the road to recovery.