“The inventory of houses for sale FELL and the Phoenix market actually tightened a bit because the number of houses sold increased while the number of houses hitting the market didn’t.”
Conclusion
With the exception of luxury and active-adult, the Phoenix real estate market is rebounding well from the Covid-19 market bottom in mid-April.
Remember, Phoenix was in a real estate frenzy before the coronavirus hit. February saw the highest number of houses sold in Phoenix since February 2005.
This seems crazy, but despite the Covid-19 crisis, the Phoenix real estate market is still tight. We still have less than 2 months of supply!
New Listings
The number of single-family houses hitting the market finally seems to have stopped falling. (The latest week’s number is always revised up so I’m discounting last week’s number.)
Even though it stopped falling the number of new listings is crazy low. Looking at the week before last, the number of new listings is down 23% from a year ago.
Nationally, the situation is similar. New listings were down 29% last week compared to a year ago, according to Realtor.com.
For Sale
The number of houses for sale is has been trending DOWN. It’s down 8% from 4 weeks ago.
In January and February the Phoenix real estate market was in a frenzy because the number of houses for sale was so incredibly low but now we have only 3% more houses for sale than during the first week of January.
Under Contract
The total number of single-family houses under contract to buyers is up 18% from 4 weeks ago but it’s still down 17% from a year ago.
The number of houses going under contract last week was up 39% from 3 weeks earlier!
Luxury, however, hasn’t started to rebound yet as pointed out by The Cromford Report. In Paradise Valley, for example, the number going under contract to buyers is only about 1/3rd of what is was in February. It went from about 15 houses per week in February to about 5 per week the last few weeks.
Active-adult communities are also lagging. In Sun City, for example, the number of single-family house going under contract to buyers the last few week is roughly half of what is was in February.
Solds
Finally reflecting the increasing number of houses going under contract to buyers the last few weeks, the number of solds last week was 12% higher than the week before. I expect the number of solds to continue to increase for at least a few weeks.
Takeaway
The inventory of houses for sale FELL and the Phoenix market actually tightened a bit because the number of houses sold increased while the number of houses hitting the market didn’t.
This information can vary a lot in different parts of metro Phoenix. Your real estate agent can find the data for your specific city or zip code at The Cromford Report.
To see what’s happening beyond Phoenix, be sure and also subscribe to my other website, RealEstateDecoded.com.
Note. This post was written on May 11, 2020 but the graph will be continually updated.
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