Market Analysis for June 2009

Another month has gone by, and there has been little indication that things will slow down. We see many properties hit the market, and in just a few days, they are gone. Overall, our inventory has gone from 33,621 homes on the market to 27,002 homes. That’s a 20% drop in inventory.  We have gone from 5.52 months of supply to 4.66 months of supply in a very short time.  Additionally, 36.4% of homes are being bought in cash. Overall, 8291 homes sold in Phoenix metro in June.  That is up from 8176 in May.

Real Estate Market Analysis June 2009

Tempe Real Estate

Tempe specifically has gone from 7.55 months of inventory down to 6.32 months.  What was once 846 houses on the market has become 753 houses.  This is definitely consistent with what my clients have seen.  We have seen many homes that have offers before we even show it.  It certainly feels like 2005 all over again.  It’s gotten to the point that clients that really want to live in Tempe are buying regular resales.  Fortunately, traditional sales are now priced almost like foreclosures.

Real Estate Supply for June 2009

Phoenix Metro

Across the board, all the cities have seen a significant drop in supply while keeping demand constant.  Chandler and Gilbert have surpassed Phoenix in supply with 4.18 months and 4.21 months compared to 4.24 months.  Scottsdale and Paradise Valley continue to have longer supplies.  This makes sense as these are our two priciest cities.  Nonetheless, they’ve both had 3 months of supply decreased.