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Reviewing the Phoenix MLS data for the same week, on eyear ago, new listings coming onto the market are down by 22%, properties under contract are up 46%, and sold properties are up 38%.  This is hopeful news for melting the over abundance of inventory that is causing price erosion, however, the average sales price is also down 40% from this time period last year.

Based on the number of listings currently in inventory, and the absorption rate, we are sitting at a 10.5 month supply of inventory, versus a 16.8 month supply at this time last year.  Typically a 6 month supply is considered a balanced market.

Interest rates did inch down slightly again this week.  That is a piece of positive news.

Current conditions in the Phoenix market:

Today, there are 43,082 single family detached listings actively being marketed in MLS.  That is a decrease of just 22 listings.  I had actually expected to see the number increase this week, as many sellers who have been waiting for the conclusion of the holidays to list their properties are rushing to get them onto the market, so the decrease, however slight, was a pleasant surprise.

Total listings (including condos, town-homes, and patio homes) active in MLS today is 52,573 which is an increase of 108 listings over last week.  Again, a pleasant surprise since I had anticipated that the swell would be larger.

The overall absorption rate (the number of listings going pending, versus the number of active listings) has held steady at 11% again, this week.