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For the first time in nearly three years, we are seeing listing invetory melt rather than swell, consistently week over week.  This week, foreclosure listings comprise 23% of the invetory, but are still comprising 66% of properties that are selling, which is continuing price erosion. 

The good news right now is for first time buyers.  The affordability index for Phoenix is 106%, meaning that based on median incomes and price ranges 106% of people could afford to purchase a home in Phoenix.  The economic stimulus package also offers some terrific incentives for first time buyers.  A first time buyer is considered to be anyone that has not owned a home in the past three years.  You will be able to see the specifics regarding the benefits in the March 1st edition of our newsletter, on our web site at www.pacellagroup.com.

Reviewing Phoenix MLS data fro the same period one year ago, once again, pending sales are up 76% over the same time period last year, and again, closed escrows are up 64%.  New listings coming onto the market are down 11%.

Current Conditions in the Phoenix Market:

Today there are 40,533 single family detached listings actively being marketed in MLS.  This is a decrease of another 522 listings in the past week.  I will be anxious to see if that number drops below 40,000 next week.  If so, it will be the first time in over two years that I have seen inventory below 40,000 units.

Total listings, including condos, patio homes and townhomes active in MLS today is 50,079.

The overall absorption rate (the number of listings going pending, versus the number of active listings on the market) has held steady at 16% this week.