This is a key housing market to follow since Phoenix saw a large bubble / bust followed by strong investor buying.

Inventory was up 1.0% year-over-year in October.  This was the eighth consecutive month with a YoY increase in inventory, following fifteen consecutive months of YoY declines in Phoenix.

The Arizona Regional Multiple Listing Service (ARMLS) reports (table below):

1) Overall sales in October were up 12.6% year-over-year.

2) Cash Sales (frequently investors) were down to 21.0% of total sales.

3) Active inventory is now up 1.0% year-over-year.  

More inventory (a theme in 2014) – and less investor buying – suggested price increases would slow sharply in 2014.  And prices increases did slow in 2014, only increasing 2.4% according to Case-Shiller.

In 2015, with falling inventory, prices increased a little faster –  Prices were up 6.3% in 2015 according to Case-Shiller.

Now inventory is increasing a little again, and – if this trend continues in Phoenix – price increases will probably slow in Phoenix.    According to Case-Shiller, prices in Phoenix are up 2.7% through August (about a 4.0% annual rate) – slower than in 2015.

October Residential Sales and Inventory, Greater Phoenix Area, ARMLS
  Sales YoY
Change
Sales
Cash
Sales
Percent
Cash
Active
Inventory
YoY
Change
Inventory
Oct-08 5,384 1,348 25.0% 55,7031
Oct-09 8,121 50.8% 2,688 33.1% 39,312 -29.4%
Oct-10 6,591 -18.8% 2,800 42.5% 45,252 15.1%
Oct-11 7,561 14.7% 3,336 44.1% 27,266 -39.7%
Oct-12 7,020 -7.2% 3,081 43.9% 22,702 -16.7%
Oct-13 6,038 -14.0% 1,910 31.6% 26,267 15.7%
Oct-14 6,186 2.5% 1,712 27.7% 27,760 5.7%
Oct-15 6,308 2.0% 1,570 24.9% 24,702 -11.0%
Oct-16 7,102 12.6% 1,494 21.0% 24,950 1.0%
1 October 2008 probably includes pending listings

From http://feedproxy.google.com/~r/CalculatedRisk/~3/q2T5zpoa0Mk/phoenix-real-estate-in-october-sales-up.html

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