This graph comes straight from the local MLS. It includes all residential real estate listings.
The bars on the graph are the months of inventory. Months of inventory is how many months it would take to sell all the listed homes if the same number of homes sold each month as that month.
Be aware that we may see fewer bank-owned homes hitting the market in the next few months because some major banks have changed their policies. Time will tell.
You can see that the metropolitan Phoenix residential real estate market is well on its way to correcting.
We will see the months of inventory tighten up in the Spring as usual. The only question is, “How tight?”. In my book, 5 to 7 months of inventory is normal. Some people say 4 to 6 months is normal.
{ 2 comments… read them below or add one }
Frank 11.14.08 at 8:08 pm
The number of listings (56k) is still very high, the all time high before the runup in 2004, was 28k, and that was in 2003. Could you explain the difference between the new listings 14k on average and sold listings 4k on an average where the active listings still does not change by much. What happend to the other 10k.
John Wake 11.14.08 at 11:40 pm
Frank,
It doesn’t show canceled and expired listings.
A canceled listing is where the seller (or agent) cancels the listing agreement.
An expired listing is where the listing agreement reaches its end date with the home having failed to sell.