Yesterday, Inman News reported that Phoenix is the number one market in the country for rising list prices. According to Realtor.com, Inman News’ source on the story, list prices here are up 23.5% from this time last year.
This makes sense. Here are the latest figures from the Arizona Regional Multiple Listing Service:
- 13,403 active listings
- 8,943 closed listings (last 30 days)
- 1.5 month supply of homes
When demand increases, prices naturally go up. And with less than a 2-month supply of homes we’re seeing bidding wars again. What doesn’t make sense to me is this quote from the article:
“However, Realtor.com analysts noted that the large shadow inventory of potential foreclosures in these states (Arizona, Florida) could undermine this optimism and keep prices low as supply floods the market.”
What shadow inventory? What supply? Don’t you think that if the banks were really sitting on a big supply of shadow inventory in Phoenix now would be the perfect time to unload these houses?
Even if the banks had a shadow inventory of 20,000 – 30,000 houses and dumped them all on the Phoenix market at one time (which they would NEVER do) at the rate we’re selling homes this new supply would be gone in 3-4 months.
I say bring on another wave of foreclosures! Us fix and flippers need more deals. Surf’s up!