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The decreasing listing inventory is becoming a welcome trend, and it's no surprise that it is being driven largely by the foreclosure market.  Foreclosures accounted for 66% of all closed transactions in the last 30 day period.  The good news is that it is melting inventory, the bad news is that sellers for the time being will need to accept that in many areas of the Valley, their property is competing with foreclosures.

Reviewing the Phoenix MLS data for the same period one year ago, pending sales have increased by 76% over January of 2008, and properties closing escrow have increased by 61% over the same time period last year.  We are continuing to see these percentages grow each week, which is terrific news for our market.  Decreasing inventory will bring the market back into balance.

Current conditions in the Phoenix market:

Today there are 42,095 single family detached listings actively being marketed in MLS.  That is a decrease of 612 listings for the week.  That is a decrease of nearly 1,000 listings in the past two weeks.

Total listings (including condos, town-homes, and patio homes) active in MLS today is 51,596, which is a decrease of 657 total listings.

The overall absorption rate (the number of listings going pending, versus the number of active listings on the market) has remained at 15% this week.  Fifteen percent is the highest absorption rate that I can recall since I began tracking absorption in 2007.