Declining Inventory

This post should resonate with the home seekers out there having a hard time finding the right property or missing out because of multiple offers. This is a sign of the times unfortunately… With banks regulating the flow of foreclosure listings and an increased flow of buyers to the market place, inventory levels are on the downward trend and are anticipated to continue dipping through the fall.

Click on the chart to view a larger image.

As you can see, the number of active listings was on a month over month downward trend with a view areas of level inventory. Pending and closed sales aren’t particularly encouraging, but are still holding steady given the season swing to the Casa Grande market. We anticipate seeing a rise in the pending and closed sales from November through to late spring, and possibly early summer.

In fact, let’s compare the months supply of inventory for the past year. In September 2010, the Casa Grande area had a 6.2 months supply of inventory and at the end of September 2011, we’ve dropped to a 3.3 months supply. The months supply of inventory is determined by the number of sales per month divided by the number of active listings. Meaning that if sales continued at the same pace without new listings coming on the market, it would take 3.3 months to sell out. The numbers on what constitutes a normal market vary, but typically a 1 to 3 months supply is a sellers market, a 4 to 5 months supply is a buyer’s market with anything over 6 months being a buyer’s market. The past few years have been buyer’s markets, but it appears that it’s the seller’s turn.

Click on the chart to view a larger image.

About Melissa Yost Fuentes

Melissa specializes in residential real estate in the Central Arizona market which includes the communities of: Casa Grande, Maricopa, Arizona City, Coolidge, Florence, Chandler, Gilbert, Mesa, Queen Creek, San Tan Valley and everything in between. She has a drive for excellence which has earned her the following designations and certifications that add to her ability to effectively work for you: the Certified Distressed Property Expert designation, the Certified Investor Agent Specialist designation, the Accredited Buyer Representative designation, the Short Sale & Foreclosure Resource certification, the Graduate Realtor Institute designation, and the ePro designation which is designed to help utilize the most current and innovative technology tools when searching for or selling your home. In addition, an Associate of Arts degree in Visual Communications with an emphasis in Multimedia helps Melissa put every piece of the marketing puzzle together to work for you when selling your home in this difficult market.

Posted on October 3, 2011, in Market Statistics. Bookmark the permalink. Leave a comment.

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