Derek Jarr, managing partner of Green Street Realty in Phoenix… “The sales reduction is a result of the fact that you don’t have as much distressed inventory in the market anymore,” Jarr said. “There aren’t as many people that have to sell … now it’s people who want to sell.”
Or maybe home sales are down because prices are up about 70% from 2.5 years ago and buyers are less enthusiastic about buying homes at these prices versus the prices of 2.5 years ago.
The fall in distressed sales caused Phoenix home prices to rise but it was the rise in prices that caused the slowdown in the number of homes sold.
If we had zero distressed sales now but prices were the same as 2.5 years ago, Phoenix home sales would still be booming.