In the East Valley and in South Chandler , homes that are priced below $200,000 have less than a six month inventory which means it is a neutral market but leaning toward a buyer’s market. Does this mean the market is recovering? Well, I would say the prices have finally dropped to a point where buyers can afford them again. Inventory is declining and by looking at the chart below, you can see how the pending sales have increased the last 3 months . Most of these pending sales should close which means that our inventory should continue to drop. That is very good news for sellers.

Based on price point, the lower homes are selling and are actually selling pretty quickly. Homes priced higher are obviously going to take longer to sell, but even up to $400,000 we are still under a 12 month inventory timeline which is not horrible, considering what the Phoenix market has gone through the last 3 years. The REO or Bank Owned homes are decreasing as those prices continually decline. The Bank owned inventory, in most places and especially in South Chandler, is only 1.4 month supply. Continue to see inventory drop as we head into our busy season from May-September.

Check back next week to see if we have any updated numbers on actual sales in April. And remember if you would like a list of REO homes for sale or need a market analysis of your home please feel free to email me at melterhomes@johnhall.com or check out my website.