Phoenix Real Estate Market Buyer Demand Reaches Record
The Phoenix real estate market is experiencing tremendous improvement in buyer demand, as measured by the number of homes currently under contract for purchase.
The curve clearly shows buyer demand with a nearly vertical trajectory at roughly 13,000 properties currently under contract for purchase. Surprisingly, this doesn't take into consideration another approximately 2,500 properties in a separate 'under contract' status.
The rise in demand is working to reduce available inventory in the market to nearly 44,700 properties from just under 53,000 in January. This is an impressive development in the Phoenix housing market.
Part of the increase in buyer demand may be attributable to a deliberate pricing tactic by Fannie Mae to underprice properties on the market in order to generate multiple higher offers. As well, a moratorium by Fannie Mae and Freddie Mac that only just terminated, may have been keeping some potential inventory from hitting the rolls.
The fact that the moratorium is lifted, is a positive development in my opinion. Concerns for ballooning, 'hidden' inventory and the impact of any sudden deluge of properties on the market were growing for many.
Going forward, we should hope to see some easing of the curve and gradual sloping downward as a healthy trend. Generally, the nature of the curve as it looks right now could work to create imbalances in the Phoenix real estate market.
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