May 2017 inventory levels have stabilized, with May closings in most areas the highest since 2011.
Valley wide May closings were 8,138. With 15,584 homes currently active, this represents just under a 2 month supply of homes. Considering that in May 2011, sales represented mostly bank owned and short sale properties at deeply discounted prices, the current situation represents a more stable market with an upward trend in pricing.
The most robust markets continue to be the West Valley, the SE Valley and Phoenix which all dropped to 1 1/2 months of supply. Obviously, this will continue to put upward pressure on pricing in these price ranges.
Scottsdale under $1M has dropped to a 2 1/2 month supply. This is extremely low, considering that the average sale price was $535,666. In all probability, this will put upward pressure on pricing in the months to come.
In the luxury markets of Paradise Valley, inventory dropped to a 6 1/4 month inventory of homes. In contrast, the inventory in Scottsdale of homes in excess of $1M is at 11 1/2 months which represents a drop of 16%.
This data is for single family detached homes only. Supply numbers are based on the number of closings in the previous month divided into the total number of active listings.