Phoenix area real estate listings take another plunge -- down 17%

There are 39,541 active listings in the Phoenix area real estate market as of 6:30 a.m. on May 1, 2009. This is a decrease of 6,672 from April 1, or 16.9%.

This is the fifth consecutive month that active Metro Phoenix real estate listings have decreased in the Phoenix area real estate market.  The total decrease in active listings has been 14,997 since December 1, 2008. It's been approximately 18 months -- or more -- since listings have been this low. Supply is one of the main factors that affects pricing.

The decrease in Metro Phoenix real estate listings reflects a combination of increased sales and frustrated sellers taking their homes off the market.  Preliminary indications are that sales have increased yet again in April 2009.  Total sales in April 2009 will end up being over 8,400. I will publish the total sales figure next week because it always takes a few business days for all the sales from Metro Phoenix real estate listings to get recorded correctly.

Comments

[Gene Urban]

Thanks for the post. It is getting interesting out there. Hope we don't get too many newbie investors who don't take the time to learn the business and end up dumping inventory back in the market in a year.

You have a great blog with thoughtful commentary.

[Ron]

Thanks, Gene.

I hear what you are saying. The market is so attractive to investors right now -- seasoned and new alike.

I have some investors buying newer properties for an average price of $70,000 cash. The rental prices are in the $900 - $950 range. That's a pretty good cash-on-cash investment.