How can inventory get worse?!

 Cromford Daily Observation ~

It can be hard to explain to people just how bad the supply of resale homes has become in Greater Phoenix. The reality is quite difficult to grasp unless you are trying to buy one. Many people mistakenly think demand must be exceptionally high, but that is not really the issue. It is above average but not unusual.

Not only is the supply extraordinarily low, it has dropped by a large percentage since the beginning of the year.

In a normal year we would expect to have more available supply in mid-February than we had at the start of the year. For example in 2015 active listings rose from 22,879 in week one to 24,041 by week 8. This excludes listings in UCB or CCBS status but includes all areas & types found in ARMLS. This is a 5% increase.

In 2021 we started the year at 6,113 and by week 8 we have dropped to 4,731, a decline of 23%. This is unprecedented.

You can compare the years easily using the chart here.

If active listings were a species of animal, they would have to go on the critically endangered list.

___________________

The inverse graph is created when you look at Listing Under Contract for YTD:

A Key takeaway from the daily observation is demand is no greater than 2020, it's a supply side phenomenon. 

That leaves the 3rd element - appreciation. And we're getting what we would expect:

That last line from the Cromford Daily Observation above - 'if active listings were a species of animal, they would have to go on the critically endangered list' is the challenge.