After heading downward for a month, inventory of subdivision homes for sale in Maricopa Arizona remained stable last week. Pending sales increased to the level that we would normally expect during the seasonal buying season but have not experienced until now. As I stated previously in my last post, this would suggest that there is a "last minute" rush by seasonal buyers that may have been "on the fence" the last couple of months. It would appear that the decreased inventory, coupled with many sellers' willingness to accept less than list price, has been a motivating factor.
Because I expect a lot of volatility in the Maricopa AZ housing market over the short term (at least), I have added another indicator to assist me in my analysis. From now on, I will be tracking the number of new listings that enter the market each week. This will offer some insight as to where inventory levels (and therefore values) will head once our seasonal buyers/residents are gone for the summer season.
Although most of the indicators remained relatively stable over the past two weeks, here are this week's numbers along with a couple of my comments:
ACTIVE LISTINGS: 414, stable from 419 As I mentioned, inventory has been creeping downward over the past month from the 480 range, which is close to what is was back in DEC 2012 when it reached a two year high. I have commented on where I think the inventory will be headed (up!) in the next month or so in previous posts so I will not go into that detail again. As long as new listings continue to enter the Maricopa housing market at a steady pace, I see no ther alternative once this short buying spree is over in the next 30 days or so.
ACTIVE SHORT SALES: 39, stable from 43 As mentioned previously, there are still a number of homeowners considering this option.
FORECLOSURES: 35, stable from 36
HUD HOMES: 5, stable from 4
UCB (mostly short sales with offers on them): 94, stable from91
PENDING: 284, up from 268 This is quite an increase and is more like what I expected since JAN. We are currently very busy with buyers and our listings are "showing up a storm" so I believe that this level of activity will continue at least for another few weeks. Obviously this will translate into an increased number of closings 30 - 45 days down the road.
CLOSINGS: 27, down from 54 This is a stable number as the large decrease is due to the end of the month closings of the prior week.
ACTIVE RENTALS: 150, down from 159 The rental market remains strong as inventory is at a level I haven't seen since JUNE 2012. Considering the fact that our busy rental season is just around the corner when school lets out, I feel that there is some opportunity here for investors. The problwm will be finding homes at a price that offers a good ROI. That being said, there are now a few homes that have dropped below the $90,000 mark so opportunities may be on the way!
RENTED: 53, up from 23 This large increase is due to first of the month leases beginning.
View the full report here: Maricopa AZ Housing Market Data