The Arizona housing market has slowly been recovering. As housing prices rise, so does the inventory of available listings. Active listings grew 6.4% during March and April of this year, with an additional 4.2% in the months of April and May. In comparison with the minute growth of inventory and listings during 2012, current trends show a positive growth by the end of 2013.
Increased housing prices are giving homeowners new equity to sell, which is creating new inventory. Homeowners who already had equity are being pushed into the market as well, due to new listings being sold in record time. The biggest change observed in the past two months has been sellers setting higher asking prices, instead of homeowners accepting only enough to pay off their mortgage.
Phoenix is ahead of this trend, already turning in a 14% year-over-year increase in May. This continued trend is great for home buyers in the Phoenix area allowing for a wider selection of homes, in comparison to earlier this year. This increased inventory is creating more opportunities for rental properties to be put on the market with moderate pricing.
The Real Estate inventory in Phoenix and its surrounding areas definitely have more room for improvement over the next few years, but are making consistently positive improvements. These constant improvements support that real estate continues to be a sound long term investment.