METRO PHOENIX HOME SALES AUGUST 2008

Inventory levels of single family homes,SFH, in metro Phoenix and Scottsdale continue to stay level. After jumping up the first couple of months this year, inventory declined through the peak selling season of April to June. Since June the inventory levels have remained fairly constant.

When looking at July 2008 sales for SFH, I have recorded 5,353 homes sales from ARMLS, Arizona Multiple Listing Service. This compares to July 2007 sales of 3,839 SFH for the Metro Phoenix area and we see a huge jump from last year. I believe home sales hit there bottom here in Phoenix from July of 2007 through March of 2008. That doesn't mean prices or average values have bottomed out, price declines lag sales activity. But what that does mean is that demand is back in the market and right now we are working towards a bottom and another shift in the market. The biggest thing I have learned is that this market is so big, it takes a while to shift. With the level of REO, standing for real estate owned or foreclosure homes, properties coming to the market that is another factor that will stand in the way of the shift. Demand is back, we need the REO's to peak and begin to fall. We did see fewer foreclosures last month than the previous month, but one month does not make a trend.