In this installment of our Metro Phoenix Home Sales report we'll discuss why we're still in a home seller's market -- even though housing sales are slowing and prices are slightly decreasing.
The home sales cycle in 2015 has been much like any other year in our local housing market. Metro Phoenix home sales begin to takeoff in March, peak in June, and decline throughout the fall. We affectionately call this the "school shuffle" as parents try to complete moves before the new school year begins. The difference in 2015 has been the number of home sales. Metro Phoenix home sales between March-August have averaged 8,043 per month, up 15% from the same time period in 2014.
True to form, Metro Phoenix home sales peaked in June and have decreased over the last two months.
Decreasing Metro Phoenix home sales means less buyers looking for homes. It also means buyers have stopped bumping into each other at homes. Inevitably, multiple offers have become less common. This leads to price stabilization or, in our case, a decrease in housing prices. The below chart shows a steady increase in prices that peaked at $136 per square foot during April-June, then dropped to $133 over the last two months.
So, why are we still in a seller's housing market? Lack of inventory is the simple answer. Housing inventory is 26% below normal levels. This leads to fewer acceptable choices for buyers.
The Cromford Market Index® (CMI) sums it up. It measures a combination of factors within the Phoenix real estate market that includes supply and demand. An index of 100 indicates a balanced market. Scores over 100 indicate ... read the rest of the story at Phoenix Market Reports