Price (green line)
The median single family home price in metro Phoenix of homes sold via the MLS fell to $127,900 in February 2009. The median home price in Phoenix, Arizona hasn’t been that low since January 2001.
At $127,900, the median home price in metro Phoenix has fallen 52% from the peak median home price of $264,800 in June 2006.
Sales (blue line)
Single family home sales in metro Phoenix AZ in February were strong at 4,901 homes. It was the best February for number of homes sold since 2006.
The number of homes sold in metro Phoenix, Arizona in February 2009 was 51% higher than in February 2008.
Listings (red line)
The number of single family detached homes listed for sale FELL 4% from mid-February to mid-March. Last year, the inventory increased 1% over the same period.
The February inventory of homes listed for sale was equivalent to a 9 months supply of homes. That is still a buyer’s market to be sure but it is also a significantly tighter supply of homes compared to February 2008 when we had 16 months of inventory.
We will likely see a continued sharp lowering of “months of inventory” of homes listed for sale. Supply will likely reach the “normal” range before late summer, although it may not stay there. (I consider 5 to 7 months supply as “normal,” although many people consider 4 to 6 months supply as normal.)
Although there are significant variations within the area, the residential real estate market for metro Phoenix, Arizona as a whole continues to correct.
(“MLS Listings” are measured at one point in time, usually the 15th day of the current month. “Median Price” of homes sold and the total number of home “MLS Sales” are for the entire preceding month.)